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 top cryptocurrency exchange in the United States will soon be a publicly listed company once its COIN stock launches on the Nasdaq stock exchange on April 14.
Generally, the sentiment around the listing has been overwhelmingly positive from both the crypto and traditional financial markets. With the date fast approaching, analysts have been issuing a variety of perspectives related to how the listing could impact Bitcoin and altcoin prices.
Coinbase rally, crypto top?
As Cointelegraph previously reported, Coinbase is technically not conducting an initial public offering (IPO).
Instead, the exchange is directly listing on the Nasdaq, bypassing the need to work with investment banks which are often costly for businesses.
Despite the lack of involvement of investment banks in the process of listing Coinbase, there is significant hype around COIN.
While speaking CNBC’s Squawk Box on April 12, Jim Cramer said:
There are several reasons why investors in the traditional financial market are optimistic on COIN.
Most notably, the two main factors are: getting exposure to the crypto market without owning cryptocurrencies and the lucrative business model of Coinbase.
According to Ben Lilly, the co-founder of Jarvis Labs:
John Street Capital, a venture capital and financial researcher, noted that Coinbase is massively profitable with an annual revenue of $1.8 billion.
Atop the compelling financial report and revenue, the user base of Coinbase is much larger than Cash App and Venmo.
In fact, Coinbase has the biggest user base out of all financial institutions in the U.S. with the exception of JPMorgan. The researcher wrote:
Although some traders believe crypto could reach a top after the Coinbase listing, the market sentiment building up toward the listing is highly positive.
When asked about the significance of the Coinbase listing, Ben Lilly said:
Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, also said the Coinbase “IPO” could boost Bitcoin to $70,000. He said:
How did Galaxy Digital perform when it listed in Canada’s stock exchange?
Another crypto firm that went public in the past year is billionaire investor Mike Novogratz’s Galaxy Digital.
Since Galaxy Digital listed in Canada’s stock exchange, its stock rose by more than 20-fold
Although the business model and the market capitalization of the two companies at launch are massively different, this shows that there i interest in publicly-listed crypto-focused companies at launch, which would likely reflect on COIN’s value.