On Thursday, Coinbase's shares (COIN) plummeted by 9.5%, falling to just under $200. This unexpected decline may be attributed to emerging competition in the US market. As a leading crypto player, Coinbase has dominated the Bitcoin ETF custodian space, but its market share could be threatened by established players like CME Group.

CME Group, a well-known player in traditional finance and crypto, has announced plans to launch spot BTC trading services. This move could potentially disrupt the market share of dominant forces like Coinbase and Binance. Additionally, Cathie Wood's Ark Invest has been gradually selling off its COIN shares, contributing to the selling pressure.

Coinbase's success in the first quarter of 2024 was marked by a remarkable 72% revenue surge, driven by its role as custodian for numerous ETF providers, including BlackRock. This led to a significant increase in its shares, which peaked at $280 in late March. However, the recent drop in shares, from $215 to $199, may indicate a shift in market dynamics.

The introduction of spot BTC trading services by CME Group could potentially challenge Coinbase's dominance in the market. As the crypto landscape continues to evolve, Coinbase will need to adapt to emerging competition and market changes to maintain its position as a leading crypto player.