Bitcoin briefly surged above $ 60,000 on Friday as the focus shifted to Coinbase and its plans to go public this month, along with Morgan Stanley’s recent filing of pro-crypto securities.
Coinbase announced late Thursday evening that it had received approval from the US Securities and Exchange Commission to list its stake in the Nasdaq via what is known as a direct listing under the ticker ‘COIN’ on April 14th. In retrospect, a direct listing. Public listing requires a company to save the money it pays to investment banks rather than raise it in the process.
Founded in 2012, the US cryptocurrency company offers its retail and institutional customers exchange, trading, staking and custody services. The presence in more than 100 countries brought 2020 sales of 1.3 billion US dollars and a profit of 322 million US dollars.
Filings with the SEC show the cost of buying a Coinbase Global share at a price that would increase its value to approximately $ 67.6 billion. The company has $ 1 billion in cash on hand that is expected to protect it from Bitcoin’s infamous price volatility that affects everything from sales to profits.
For example, Coinbase lost about $ 30 million in 2019 when Bitcoin prices fell. More than 96 percent of the company’s revenue comes from transaction fees for Bitcoin and other cryptocurrency businesses.
This explains somewhat the resilience of Bitcoin to sell-off attempts after closing the first quarter in a jubilant mode. The cryptocurrency hit an intraday high of $ 60,055 during Friday’s Asia-Pacific session before correcting downward on modest profit-taking.
Further bullish tailwinds came from Morgan Stanley and his recent involvement in the cryptocurrency sector.
Bitcoin exposure received
Morgan Stanley announced in its April 1 SEC filing that 12 of its mutual funds may be indirectly involved in the bitcoin market through cash-settled futures or Grayscale’s Bitcoin Trust.
With a story where it talked badly about the flagship cryptocurrency, the investment banking giant has grown into one of its leading Wall Street supporters. It confirmed that its institutional funds may have 25 percent exposure to the Bitcoin markets. The investments will provide protection against downward movements in the equity and bond markets.
Morgan Stanley announced last month that it would offer its wealthy clients the option of investing in Bitcoin through three crypto-enabled funds. The company also reportedly participated in talks to acquire Bithumb, a South Korean cryptocurrency exchange.
Bitcoin held onto its recent gains when Coinbase moved to Wall Street and Morgan Stanley entered Crypto Street. The cryptocurrency expects a retest of $ 60,000 for a breakout move as both the traditional and crypto sectors intertwine.
“I have a feeling April will be a good month,” said Josh Rager, an investment analyst.
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