Analysts say the impact of Coinbase listing on the Nasdaq will be overwhelmingly positive, as it is the bridge legacy investors will use to tap into crypto.
Coinbase, the very best cryptocurrency market in the United States, will soon be a publicly listed company once its COIN inventory launches on the Nasdaq stock exchange on April 14.
Generally, the opinion around the list was overwhelmingly positive from the crypto and traditional financial markets. Together with the date just one day away, analysts are devoting a variety of perspectives related to how the listing could affect Bitcoin and altcoin prices.
Coinbase rally, crypto top?
Instead, the market is directly listing on the Nasdaq, bypassing the need to work with investment banks, which is often expensive for businesses.
Regardless of the lack of involvement of investment banks in the process of listing Coinbase, there's considerable hype around COIN.
"You have ta purchase Coinbase when that deal comes. Though it's a $100 billion deal, this is now common knowledge that there are many businesses that will switch. MicroStrategy has always been the pioneer, so others would want to follow."
There are lots of reasons why investors in the traditional financial marketplace are optimistic abou COIN.
Most notably, the two main factors are to get exposure to the crypto market without owning cryptocurrencies and the lucrative business version of Coinbase.
"Coinbase is the watershed moment in terms of legitimizing some valuations you see in crypto, especially around DEXs who have a very small fraction of the number of workers and opex [working expenses] a Coinbase or ICE has. Crypto is an advantage with incredible volume and diversity, which is poised to rise much more. Coinbase showcases how lucrative exposure to this market can be. Also, I anticipate a wave of M&A and VC activity on the heels of the as personal investors will be requesting their finance managers for vulnerability to the area."
Atop the persuasive financial report and earnings, the consumer base of Coinbase is much bigger than Cash App and Venmo.
In reality, Coinbase has the largest user base from all financial institutions at the U.S., with the exclusion of JPMorgan Chase. The researcher wrote:
"The @coinbase team announced 1Q21 data including earnings of ~$1.8B, adj EBITDA of $1.1B, NI of $730-$800M, trading volume of $335B & assets to the platform of $223B (11.3percent of cryptoasset market) with 56M users Run-rate of $7.2B at earnings / $4.4B in EBITDA / $3.0B of NI. The 56M user is larger than @CashApp & @Venmo and considerably larger than @RobinhoodApp & @eToro. That's greater than each bank not named $JPM."
Although some traders think crypto can reach a shirt after the Coinbase list, the industry sentiment building up toward the listing is extremely positive.
When asked about the significance of the Coinbase list, Ben Lilly said:
"You always need that bridge. How legacy markets value a business that works in crypto is that bridge. Now legacy investors can walk across the bridge and recognize it is an untapped sea of investable assets. They might not invest right away, but their framework for how to value something gets simpler."
Mike McGlone, senior product strategist at Bloomberg Intelligence, considers the Coinbase"IPO" could boost Bitcoin to $70,000. He said:
"Coinbase IPO May Boost #Bitcoin to $70,000, Like #Tesla to $60,000 -- The cheapest 30-day volatility because October indicates Bitcoin is ripe to exit its cage and bull-market continuation is favored for another $10,000 move. ."
How did Galaxy Digital perform when it listed on Canada's stock exchange?
Another crypto firm that went public from the past year is billionaire investor Mike Novogratz's Galaxy Digital.
Since Galaxy Digital listed in Canada's stock exchange, its stock has rise more than twentyfold.
Even though the company model and the market capitalization of both companies at launch are vastly distinct, this shows there is interest in publicly listed crypto-focused businesses at start, which will likely be reflected in COIN's value.