Should you invest in Coinbase after its blockbuster stock market debut?

Should you invest in Coinbase after its blockbuster stock market debut?

Coinbase's connection to Bitcoin means that shares are likely to be volatile given the dramatic swings in the digital coin's price. However, Laith Khalaf, of fund shop AJ Bell, said the shares were a safer way to profit from cryptocurrency than buying Bitcoin itself because Coinbase allowed trading in all different types of online currencies.

"Coinbase is an exchange so it makes money as long as people are trading crypto. A drop in the price of Bitcoin is not necessarily bad news, so long as people are still trading. The danger is that interest in crypto fizzles out, but this is looking less likely as the price rises and more big investors accept it," he said. 

Coinbase's stock market listing could also mark a turning point for the adoption of cryptocurrencies, which in turn will push up its share price as more people trade it. 

Speaking ahead of the listing, Mr Armstrong told CNBC: “Hopefully Coinbase going public and having this direct listing is going to be viewed as kind of a landmark moment for the crypto space." 

Who has bought shares and should I?

Some high profile investors are backing Coinbase. Cathie Wood, of American fund group Ark Invest, has added Coinbase shares to three of her popular ETFs: ARK