As an experienced analyst in the cryptocurrency space, I’m thrilled to see the surge in demand for crypto company shares this year. The bull market and talk of public listings from companies like Kraken have ignited a fire under institutional investment, leading to positive market effects.
As an analyst, I’ve observed a surge in demand for crypto company shares this year, driven by the bull market and rumors of several firms planning to go public. Notably, Kraken, a prominent crypto exchange, is reportedly considering such a move in the near future. Consequently, institutional investors have been pouring more money into crypto companies, resulting in a favorable impact on the market.
Crypto Buy-side Demand Jumps
The appetite for cryptocurrency secondary market transactions, involving shares owned by early investors and employees, has significantly increased this year. Data from Forge Global indicates a 126% rise in crypto buying demand during the first half of 2024 compared to the same period in 2023. Additionally, there was a 28% increase from the second half of 2023 to the first half of 2024.
The value of equity shares in privately held cryptocurrency companies such as Ripple, Kraken, and Chainalysis has experienced significant growth. According to Andrew Saeta, the co-head of institutional sales at Forge, there is a surging interest from both individual and institutional investors in acquiring these equities.
“Individual investors express significant interest, and institutional investment has grown noticeably. The market is currently thriving, representing a robust period for us. Many people are optimistic about future possibilities, particularly given impending regulatory adjustments.”
In comparison, Kraken’s equity prices have surged by 77% in 2021, whereas Chainalysis and Ripple have risen by 17% and 13% respectively. Despite this heightened interest, crypto market activity still falls short of the record highs reached during the 2021 bull run.
Bitcoin Price and IPO Inspires Surge
This development is connected to the surge in Bitcoin and other asset prices this year. Bitcoin reached a record high of $73,000 in 2021, leading the way as institutional investments flooded in. The green light given for spot Bitcoin ETFs and trading created an influx of traditional investors, providing easy access to the market. Likewise, altcoins and crypto stocks experienced a comparable surge. Moreover, IPO discussions surrounding companies like Kraken ignited additional interest among investors.
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2024-06-20 20:51