Crypto Stocks Are Down 60% From Their 2025 Peaks — Should Canadian Investors Be Buying Now?
If you’ve been following the cryptocurrency market closely in 2026, you’ve probably noticed something dramatic: major crypto-focused companies like Coinbase, Robinhood, and Figure have taken a serious beating since their 2025 highs. We’re talking about losses approaching 60% for some of these stocks. On the surface, that might sound like a disaster. But according to research analysts at Bernstein, this pullback could actually represent one of the most compelling buying opportunities in the sector right now — especially for Canadian investors looking to gain exposure to cryptocurrency through traditional stock markets rather than direct coin purchases. Let’s dig into what’s happening, why the dip matters, and whether it makes sense for your portfolio.
Overview
When we talk about crypto stocks trading at significant discounts, we’re discussing publicly traded companies that derive their revenue from the cryptocurrency ecosystem. Coinbase is a direct-to-consumer cryptocurrency exchange platform. Robinhood is a brokerage app that allows users to trade both stocks and cryptocurrencies. Figure Technologies (formerly Sofi) operates in fintech and has a growing crypto lending division. These aren’t cryptocurrency tokens themselves — they’re companies that facilitate cryptocurrency trading and adoption.
The 60% decline from 2025 peaks represents a sharp reversal from the optimism that characterized the crypto market in late 2024 and early 2025. Various factors contributed to this pullback, including broader market volatility, regulatory uncertainty, and concerns about whether these platforms can maintain growth momentum in a maturing crypto market. However, for contrarian investors and those using dollar-cost averaging strategies, the lower valuations present an interesting opportunity to consider.
In Canada specifically, this matters because many investors prefer gaining crypto exposure through their RRSP or TFSA accounts using traditional stock exchanges rather than dealing with cryptocurrency exchanges directly. Coinbase, for example, is accessible to Canadian investors through most major brokerages, making it a legitimate way to diversify into the crypto sector without opening accounts on multiple platforms.
Key Features
Coinbase: The Retail Exchange Leader
Coinbase operates as a centralized cryptocurrency exchange where users can buy, sell, and hold digital assets. The platform offers features like staking (earning rewards on held cryptocurrencies), cryptocurrency education tools, and a subscription service called Coinbase One that provides premium features. For Canadian users, Coinbase offers access to hundreds of cryptocurrencies and integrates with Canadian banking systems for deposits and withdrawals.
Robinhood: The Democratized Trading Platform
Robinhood built its reputation by offering commission-free stock trading and has expanded significantly into cryptocurrency. The platform is known for its intuitive mobile interface, fractional share ownership, and options trading capabilities. The appeal lies in the all-in-one nature — investors can manage stocks, cryptocurrencies, and options from a single account. Canadian availability has expanded over recent years, though some features remain US-focused.
Figure Technologies: The Fintech-Crypto Hybrid
Figure operates as a broader fintech company with cryptocurrency lending and borrowing products. The company provides personal loans, mortgage services, and has developed crypto-native financial products. Its appeal to investors is the diversified revenue stream beyond just cryptocurrency trading — it’s attempting to build a complete financial ecosystem. The crypto component, while important, represents one piece of a larger puzzle.
Pros and Cons
Pros
- Significant Valuation Discounts: A 60% decline from peaks means you’re potentially buying these stocks at prices that may offer better long-term value, assuming the fundamentals of these businesses remain intact.
- RRSP and TFSA Eligible: Unlike holding cryptocurrencies directly, these stocks can be held in registered accounts in Canada, providing significant tax advantages for long-term investors.
- Established Revenue Models: These aren’t speculative startups. Coinbase, Robinhood, and Figure generate real revenue from their platforms and services, providing some fundamental business value.
- Institutional-Grade Security: As publicly traded companies subject to regulatory oversight, these platforms maintain higher security standards than many crypto exchanges.
- Diversification Within Crypto: You get exposure to the cryptocurrency sector without betting on any single coin’s performance. The company’s success depends on overall crypto adoption and trading activity.
- Easy Access for Canadians: You can purchase these stocks through any Canadian brokerage account using familiar investment platforms.
- Crypto Market Recovery Leverage: If cryptocurrency markets recover from their current state, these companies would likely benefit significantly as trading volume and user engagement increase.
Cons
- Cyclical Business Model: Revenue for these platforms is heavily tied to cryptocurrency market volatility and trading volume. During bear markets or periods of consolidation, earnings can shrink dramatically.
- Regulatory Uncertainty Remains: Canadian and global regulators are still defining how to regulate cryptocurrency platforms. New rules could significantly impact profitability or operating costs.
- Competitive Pressure: The crypto exchange space is becoming increasingly competitive, with new entrants constantly emerging and established players from traditional finance entering the market.
- Q1 2026 Earnings May Disappoint: The weak quarterly earnings Bernstein references mean near-term stock price recovery might be limited, requiring patience from investors.
- Execution Risk: These companies must prove they can maintain user growth and engagement in a maturing market. That’s not guaranteed.
- Volatility Won’t End: Expect continued price swings. If you buy near the bottom, the stock could still decline further before recovering.
- Liquidity and Volume Risks: These companies’ fortunes are tied to trading volume. During low-activity periods, their financial performance weakens.
- Late-Stage Cycle Concerns: Some analysts worry that crypto adoption in North America may be slowing, meaning growth expectations could remain muted for years.
Fees and Pricing
When we discuss crypto stocks, we’re not paying platform fees — we’re paying stock brokerage commissions, which are typically zero at major Canadian brokerages like Wealthsimple, TD Direct Investing, and Questrade. You buy Coinbase stock (ticker: COIN on Nasdaq) just like any other US-listed stock through your Canadian brokerage account.
The current pricing as of March 2026 reflects the significant discounts mentioned. While I can’t provide specific prices (cryptocurrency and tech stocks move rapidly), the key point is that these stocks are substantially cheaper than they were in 2025. Some discount brokerages may charge minimal exchange fees when purchasing US-listed stocks, but these are usually just a few dollars and don’t significantly impact the investment.
One important consideration for Canadians: currency fluctuations matter. Since these stocks trade in US dollars on Nasdaq, currency conversion fees and exchange rate movements will affect your returns. Some brokerages offer currency hedging options if you’re concerned about CAD/USD volatility.
Security
When you purchase shares in these companies, your security considerations differ from directly holding cryptocurrency. Your stock holdings are protected through the same mechanisms that protect all Canadian stock investments: regulation by securities commissions, CIPF (Canadian Investor Protection Fund) coverage for broker insolvency, and standard anti-fraud protections.
Each of the underlying companies maintains significant security infrastructure. Coinbase, for example, maintains cold storage for cryptocurrency holdings, uses multi-signature wallets, and maintains cyber insurance. Robinhood similarly invests heavily in security protocols. Figure, as a fintech company, operates under strict data security requirements.
Your primary security risk isn’t losing your stock shares — it’s choosing a reputable Canadian brokerage to execute your purchases. Stick with established institutions like TD, RBC, Questrade, or Wealthsimple, and your holdings will be protected through regulatory frameworks and insurance mechanisms.
Who Is This Best For?
Crypto stocks aren’t for everyone, but they make sense for specific investor profiles:
Long-term crypto believers: If you believe cryptocurrency adoption will continue growing over the next 5-10 years, owning a piece of the platforms facilitating that growth aligns with your conviction. These companies benefit when the entire crypto ecosystem expands.
Tax-advantaged investors: Canadians with RRSP or TFSA room who want crypto exposure without the complexity of holding digital assets directly benefit significantly from being able to hold these stocks in registered accounts.
Risk-tolerant investors: This is volatile territory. These stocks can swing 20-30% in a matter of weeks. If that makes you uncomfortable, this isn’t your investment.
Dollar-cost averaging practitioners: Investors who regularly contribute fixed amounts to their portfolios can benefit from buying during downturns, which is exactly what we’re seeing now with these 60% discounts.
Diversified tech/growth portfolios: These could represent a small allocation within a larger diversified portfolio, providing sector-specific exposure.
Investors avoiding direct crypto custody: If you want cryptocurrency exposure but don’t want to manage private keys, learn about wallets, or navigate the sometimes-complicated world of crypto exchanges, owning the companies that do this for you is a simpler approach.
Our Verdict
Bernstein’s argument for buying the dip holds some merit, particularly for long-term investors. Here’s the honest assessment: These companies are fundamentally sound businesses with real revenue and user bases. The 60% discount from 2025 peaks represents a significant re-rating of expectations, and valuations have become more reasonable than they were during the 2025 peak enthusiasm.
However, “buying the dip” is only a winning strategy if you have conviction in these companies’ long-term prospects and patience to weather continued volatility. The weak Q1 2026 earnings suggest near-term recovery won’t be explosive. These aren’t “bounce back immediately” opportunities — they’re “I believe in crypto’s future and am willing to hold for years” plays.
For Canadian investors specifically, the ability to hold these stocks in tax-advantaged accounts makes them particularly attractive compared to holding cryptocurrency directly. You get exposure to the crypto sector’s growth without the complexity and tax complications of managing digital assets.
Our assessment: If you’re a long-term investor with appropriate risk tolerance and conviction in cryptocurrency’s future, using some of your RRSP or TFSA contribution room to add positions in these discounted crypto stocks is worth seriously considering. But this should be part of a diversified portfolio, not your entire investment strategy. Do your own research on each company’s specific fundamentals before committing capital.
The key is understanding that you’re not buying crypto here — you’re buying businesses that profit from crypto adoption. Those are fundamentally different bets, and the distinction matters for your investment thesis.
Frequently Asked Questions
Can I buy Coinbase stock in my TFSA as a Canadian investor?
Yes, absolutely. Coinbase (COIN) is listed on the Nasdaq and can be purchased through any Canadian brokerage that offers US stock trading. Since it’s a stock (not cryptocurrency), it’s fully eligible for both TFSA and RRSP accounts. This is one of the major advantages of owning crypto stocks versus holding cryptocurrency directly.
Why did these stocks fall 60% from their 2025 peaks?
Multiple factors contributed: broader cryptocurrency market
The information provided is for educational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.