Bullish's crypto exchange, in a spectacular New York Stock Exchange debut, secures a whopping estimated value of around US$13.2 billion.
Bullish Cryptocurrency Exchange Makes a Splash on NYSE
Bullish, a cryptocurrency exchange operator, made a significant move this week with its successful Initial Public Offering (IPO) on the New York Stock Exchange (NYSE). The company, which is near the end of a two-year process to obtain a "BitLicense" in New York, raised about $1.1 billion, primarily in stablecoins.
The IPO marked a rare U.S. listing for a crypto exchange. Bullish, like Coinbase, is not a retail-focused crypto player, but rather an institutional one. This strategic approach, combined with the leadership of Tom Farley, the former president of the NYSE, could be a differentiator in securing institutional mandates.
The Genius Act, signed by U.S. President Donald Trump in 2020, created a regulatory regime for dollar-pegged cryptocurrencies. This legislation has contributed to the boom in stablecoins, which has been further boosted by the IPO of Bullish.
Other digital asset firms with upcoming or recent U.S. listings include Circle Internet Group, a stablecoin issuer that recently went public, eToro, a combined stock and crypto exchange, and Galaxy Digital, a crypto investment firm led by Mike Novogratz. These firms are part of a broader surge in crypto-related IPOs and listings in the U.S. this year.
Michael Hall, co-chief investment officer and founding partner at Nickel Digital Asset Management, believes Bullish's institutional strategy will provide more stable, recurring revenue. He also believes that Farley's leadership experience can help Bullish secure institutional mandates.
The stock of Bullish opened at $90 and traded over 150% of its IPO price of $37 in afternoon trading. The company plans to convert a significant portion of the IPO proceeds to stablecoins.
The White House's pro-crypto stance has played a role in the adoption and growth of the cryptocurrency market. A string of regulatory wins, corporate treasury adoption, and ETF inflows have driven bellwether bitcoin to record highs. The new White House order allowing alternative investments in 401(k) retirement plans is expected to further fuel growth for Bullish, as the company targets institutional clients.
The "BitLicense," which Bullish is near completing, requires companies to comply with know-your-customer, anti-money laundering, and capital-related requirements. Investor confidence in the cryptocurrency sector is evident as Bullish's IPO and other digital asset firms' future U.S. listings are expected to lift prospects.
In conclusion, Bullish's successful IPO marks a significant milestone for the cryptocurrency industry. The renewed investor interest and legislative support for digital asset businesses are reflected in the surge of crypto-related IPOs and listings in the U.S. this year.
[1] Source: CoinDesk [2] Source: Bloomberg
- The successful IPO of Bullish, a cryptocurrency exchange, on the NYSE has been followed by news of increased investor confidence in the digital asset sector, according to sources at CoinDesk.
- The partnership between Bullish and Tom Farley, the former president of the NYSE, could potentially secure institutional mandates for the company, as reported by Bloomberg.
- The pro-crypto stance of the White House, coupled with regulatory wins and legislative support for digital asset businesses like Bullish, has fueled the growth of the cryptocurrency market, say analysts in the general-news sector.
