As a seasoned crypto investor with a keen eye for market trends, I find the recent surge in demand for private crypto company shares an intriguing development. The Bloomberg report detailing heavy buying activity from individual investors and funds ahead of anticipated crypto IPOs has caught my attention.
According to the most recent Bloomberg update, there’s been significant investment from private backers and crypto funds in the stocks of upcoming crypto companies planning an Initial Public Offering (IPO) in the near future. Furthermore, the secondary market prices for shares in these private crypto firms have seen a notable increase due to robust demand.
Shares of Circle, Kraken, and Chainalysis In High Demand
Based on the information obtained from various trading platforms, it appears that there has been significant equity trading action in prominent crypto companies like Circle, Kraken, and Chainalysis. Notably, Kraken Exchange is reportedly mulling over a funding round prior to their anticipated IPO this year, according to CoinGape’s latest updates.
According to Forge Global’s figures, the crypto buying interest in the first half of 2024 increased by 28% compared to the second half of 2023. Consequently, Kraken equity’s implied price has risen by 77% this year. Moreover, Ripple‘s share price has climbed by 13%, and Chainalysis’ stock is up by 17%. Andrew Saeta, Forge’s co-head of institutional sales, stated:
As a researcher observing the current investment landscape, I can confidently assert that individual investors are showing significant appetite for investments. Amongst institutions, there has been a noticeable upsurge in demand. From my perspective, the market’s vitality is currently at its peak in recent times.
Shares of Crypto Firms Are Soaring
In Q1, 2024, the introduction of a spot Bitcoin ETF significantly fueled the cryptocurrency market surge. Institutional investors were attracted to this development and are currently anticipating the rollout of similar products for Ethereum.
In contrast, cryptocurrency policy is becoming a significant issue in the US presidential elections of 2024. Despite increasing popularity, the desire for crypto remains significantly lower than it was in 2021. The demand has yet to match the escalating value of crypto companies.
Approximately a year ago, Haun Ventures obtained Fireblocks and Chainalysis at reduced prices in separate acquisitions. Nevertheless, numerous secondary market transactions continue to be transacted with discounts of up to 70% versus their latest financing rounds. In relation to this situation, Stan Miroshnik, the founder of TenSquared Capital, commented:
Considering the current context, it could be beneficial to reassess secondary opportunities as several larger crypto companies have demonstrated robust performance in their operations during the past six months. The fundamental aspects of these businesses have noticeably strengthened. Notably, many of these firms possess substantial funding from previous rounds and are once again generating revenue. They have successfully navigated through the market downturn and emerged leaner and more focused as a result.
As a researcher studying the cryptocurrency market, I can anticipate that a persistent bull run could lead to an influx of Initial Public Offerings (IPOs) for cryptocurrencies on Wall Street by the close of 2024 or the beginning of 2025.
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2024-06-21 13:25