The stock market event this Wednesday has been the most anticipated of the year. The expectation has only attracted many investors who wonder when the best time to get a piece is. Coinbase’s (COIN) debut on the Nasdaq through a direct listing presents the opportunity to put its value on the line right away. While some experts predict bitcoin will be volatile, those who stray from the cryptocurrency will be disappointed.
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Because while leading assets such as Bitcoin (BTC) and Ethereum (ETH) are climbing in value, a select group of public “crypto stocks” are surging right along with them. More importantly, these stocks are outpacing the returns these leading crypto assets aren already producing.
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As part of Coinbase’s expected direct listing this week, Nasdaq has set a preliminary benchmark price of $250 per share, which would value the cryptocurrency exchange at approximately $65.3 billion. The market price for Spotify, Slack, Palantir, Asana, and Roblox were all 37% higher than the reference price on the day of their direct listing.
Based on Coinbase opening with a similar percentage increase, there would be a price around $343, very close to the private market median of $343 in the first quarter.
A new milestone has been reached on Tuesday when Bitcoin’s price soared over the $ 63,000 mark, and a unique historical landmark has been reached before Wall Street’s great event starts on Wednesday. It continued to fly to infinity and beyond on Wednesday, and its price rose to 70,000-80,000 dollars… 100,000 are expected. Coinciding with the launch of Coinbase, the biggest exchange platform for cryptographic currencies in the US, many analysts have predicted more significant capital inflows to cryptocurrencies.
Elon Musk’s Tesla and MicroStrategy, along with many others, have recently added billions of dollars in bitcoin to their treasuries. Nevertheless, Coinbase’s direct listing will offer investors the ability to purchase a cryptocurrency-linked stock that is expected to be less likely to endure constant ups and downs.
Michael Hewson, an analyst at CMC Markets, said the big question is whether Coinbase will appeal to consumers. The cryptocurrency exchange has chosen a direct listing for starters rather than hiring a broker to handle the IPO. As a result, existing investors can sell their shares to new buyers instead of waiting for the six-month grace period that traditionally accompanies Initial Public Offerings (IPOs).
There is no doubt that the Nasdaq private market’s demand and interest will be high since the Coinbase’s is estimated to be worth about $90 billion, says Hewson. One of the biggest questions is whether the price is sustainable, especially when you consider that many governments aren’t particularly enthusiastic about cryptocurrencies. Which means there is likely to be future regulation that could pose a considerable threat,” explains CMC Markets analyst Janelle Cheang.
Since Coinbase is one of the market’s primary references and drivers, the publication of its recent results and the resulting interest from professional investors could well deserve the penalty at the investment level, says LvaroAlcaiz, CMO at Onyze. “Many institutional investors were still afraid to enter this market, and many of them are sure that Coinbase represents a great opportunity to enter in an indirect manner as a result of which there is probably a high level of demand for this action,” he says.
Finally, the ‘crypto’ broker’s Coinbase move could be one of the biggest news for bitcoin “because it sends a very clear signal to investors that regulators will not be as tough on cryptocurrency,” he says. Moreover, it’s more likely that US regulators would approve the bitcoin ETF if this merger occurs, said Naeem Aslam, an analyst at Avatrade.