If I were to invest $100 in some allocation of Coinbase stock and Bitcoin - what should the ratio be?
This is not financial advice.
Either way it’s a very specific bet. Diversification is your friend.
Otherwise what you (and many others, but not all) believe in as an investor is the possibility of a return from storing your dollars in bitcoin and retrieving the value later.
If you think this announcement would affect the price, look at price history data for the time of the announcement up to the date of going public. That could serve as some kind of signal given some model assumptions. Avoid confirming your own biases and establish your margin of risk as damage tolerance.
As I see it, betting on coinbase is betting on the volume of transactions increasing over time.
Normies will be buying their bitcoin on cash app, paypal, etc. In this way I feel CoinBase is a niche product with limited growth capabilities long term. The more CoinBase makes, the more the big names in tech/finance will expand their efforts to compete. CoinBase is a decent short to medium term play imo, whereas bitcoin itself is a longer term play.
This is by no means a GREAT way to do it, just the best option currently if you are looking at crypto from a US based brokerage account.
So this is basically 100% speculation, because you can't even use the crypto you "purchase"? You're just hoping for prices to go up. How does that make sense for a purported currency? If people aren't using it, what is the value?
If you believe in crypto, why would you invest in a centralized exchange? Seems antithetical to the principles of cryptocurrencies.
For me the most important aspect of decentralized assets is separation between money and state; challenging government monopoly power over money.
That said, there are conveniences and advantages to centralization. Centralized exchanges help supply and demand meet quickly and efficiently.
I think its possible for those systems to live together productively. There is freedom when I choose to trust and consent to other willing parties to take control of my assets. The problem arises when we are compelled to give up control by force of law.