Coinbase stock on pace to snap five-session winning streak amid reported setback for bitcoin ETFs

Coinbase Global Inc. shares
COIN,
-4.21%
were dropping about 2% in morning trading Friday after The Wall Street Journal reported that the Securities and Exchange Commission has deemed inadequate applications by BlockRock Inc.
BLK,
+0.78%,
Fidelity and other asset managers for the introduction of spot bitcoin exchange-traded funds. Coinbase shares have been on a sharp rally since BlackRock revealed its plans for such an ETF earlier this month, and a decline for Coinbase’s stock in Friday’s session would snap a five-session winning streak that saw the name surge 26% across the five trading days through Thursday. Coinbase was expected to have a custodial role related to the ETF. The WSJ report discussing the SEC’s negative assessment of the applications cited multiple unnamed sources, and the SEC didn’t immediately respond to a MarketWatch request for comment about the report. Shares of MicroStrategy Inc.
MSTR,
-2.14%,
seen as a play on bitcoin due to its holdings in the cryptocurrency, were off 1.4% in Friday’s session, while bitcoin itself
BTCUSD,
-1.20%
was down 1.4% as well.