Coinbase (NASDAQ:COIN) has been upgraded to Market Perform from Underperform at Raymond James, given the current bitcoin (BTC-USD) rally on the back of strong exchange-traded product inflows.

"We clearly underappreciated the impact that [ETP] inflows would have on the valuations of bitcoin (BTC-USD), which in turn has driven massive outperformance in Coinbase's (COIN) shares," said analyst Patrick O'Shaughnessy, adding that the stock's momentum may persist till ETP flows taper and/or reverse.

Raymond James' long-term bias on the cryptocurrency exchange remains negative, but it no longer believes that Underperform is the appropriate near-term rating.

Substantial doubts remain about Coinbase's (COIN) long-term earnings prospects given its commoditized client offering, cryptos' tenuous long-term outlook that seems largely based on the Greater Fool Theory rather than inherent value, and meaningful regulatory risk.

"The longer this crypto rally persists, the greater the odds that a competitor attacks Coinbase (COIN) with a disruptive pricing strategy," O'Shaughnessy cautioned.

Seeking Alpha's Quant rating on the stock is Hold, in line with SA Analysts' and sell-side ratings.

Coinbase (COIN) shares, which surged close to 380% over the past year, rose 2.3% before the bell on Tuesday amid a broader rally in crypto-linked stocks.