Despite the approval of the bitcoin ETF, the shares of Coinbase and Robinhood are still down.

The approval of bitcoin exchange-traded funds in the U.S. is weighing on traders' decisions about the crypto trading platforms, causing shares of Coinbase and Robinhood to be lower on Thursday.

shares dropped 6.7%, while ended lower by 3.5%.

The price of bitcoin fell from its height, causing both stocks to accelerate losses.

On Wednesday, the Securities and Exchange Commission approved rule changes that enable the launch of bitcoin ETFs in the U.S. This news has been eagerly anticipated by investors in the crypto space as it signifies greater legitimacy for what has been a volatile industry and asset class.

"Coinbase CEO Brian Armstrong stated in an interview with CNBC's Andrew Ross Sorkin that a monumental step has been taken by the crypto industry. He explained that there are 52 million Americans who have been using crypto over the past decade and have been waiting for recognition from the government, particularly the SEC, that this asset class is here to stay. Finally, they have received that acknowledgment."

The introduction of a spot bitcoin ETF in the U.S. may put pressure on Coinbase in the future, as it provides investors with an easier way to invest in cryptocurrency.

According to JPMorgan analyst Kenneth Worthington, the launch of a Bitcoin ETF could have both positive and negative effects on Coinbase, but since Coinbase's stock price has increased, the risks are more relevant to shareholders.

"Coinbase has been chosen as the custodian for 8 out of the 11 Bitcoin ETFs approved by the SEC, and it also has surveillance sharing agreements. However, the approval of these Bitcoin ETFs could potentially harm Coinbase as it sees them as competitors."

In 2023, Coinbase experienced a 391.4% increase, while Robinhood achieved a more than 56% growth.