A wide gap has opened between Bitcoin and Coinbase, and some investors are asking whether now is the time to buy the stock. Crypto service providers such as Coinbase and Circle have corrected sharply over the past few weeks and missed Bitcoin’s rebound entirely. Price alone does not make an entry point, though. What matters is what each stock's key driver is pricing in.

For Circle, we set out our current view and the driver we track to judge whether the share price offers value. For Coinbase, we ask whether the gap to Bitcoin is wide enough to justify buying, which driver we are watching, and whether we expect it to push the shares higher or lower.

Bitcoin (LHS) vs. Coinbase (RHS) - a HUGE value opportunity?