Missed Circle (CRCL.US) and Bullish (BLSH.US)? These three cryptocurrency IPOs can't be lost anymore!

Zhitong Finance App learned that after the successful listing of Circle (CRCL.US) and Bullish (BLSH.US), the cryptocurrency sector is ushering in a new wave of IPOs.

Whether investors view cryptocurrency as a revolutionary technology or a generational scam, this sector does hold huge wealth opportunities. Although mainstream digital assets such as Bitcoin and Ethereum have recorded impressive gains, investing in companies that provide the infrastructure for this boom may bring more lucrative returns.

This is reminiscent of the commercial wisdom of “selling shovels” during the American Gold Rush. Robinhood (HOOD.US) and Coinbase (COIN.US) are exemplary in this regard. The two industry leaders experienced several years of sluggishness after going public in 2021, but with the end of the speculative winter of trading, their stock prices have soared 475% and 62%, respectively.

This astonishing performance has sparked FOMO (fear of missing out) sentiment in the cryptocurrency and fintech industry. Coupled with the introduction of a series of pro-cryptocurrency policies by the Republican-led US government, and digital asset valuations repeatedly reaching new highs, more and more crypto companies are flocking to Wall Street. This has already spawned some of the most impressive rounds of market surges this year.

Take USDC issuer Circle as an example. Since listing, the increase has exceeded 400%. Coincidentally, the stock price of Bullish, a cryptocurrency exchange and media company that just went public last week, almost doubled, once again confirming the strong demand for crypto IPOs in the market.

So which companies are worth watching next? The following three potential stocks are not to be missed:

Grayscale

Without the efforts of the world's largest digital asset management company, the birth of Bitcoin and Ethereum ETFs could be years away. Its launch of Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) pioneered the allocation of cryptocurrency assets on Wall Street. Long before traditional asset management giants paid attention to this field, these products provided investors with spot exposure.

Grayscale, which currently manages more than 33 billion US dollars, plans to use stable management fee revenue generated by its various cryptographic products to enter Wall Street. News in mid-July revealed that the company had secretly submitted an IPO application.

Gemini

Despite falling out of touch with the founding of Facebook, the Winklevoss brothers used the settlement to build a billion-dollar business in the cryptocurrency sector.

After spending a million dollars to buy Bitcoin a decade ago and unsuccessfully trying to launch the “Winklevoss Bitcoin Fund,” the twins instead created their own cryptocurrency exchange.

Today, Gemini has grown into one of the leading centralized exchanges. Given Circle's strong performance, it's no surprise that it became one of the first crypto companies to announce an IPO plan. At the time of the most recent round of financing in November 2021, cryptocurrency was at an all-time high. At that time, the valuation of 7.1 billion US dollars may have become its IPO pricing benchmark.

BitGo

The cryptocurrency escrow giant has also joined the Wall Street listing race. Currently, it has more than 100 billion US dollars in custody and is one of the largest cryptocurrency custodians in the world. It directly provides services to exchanges, asset management companies and other enterprises. Its business scope includes not only asset custody and security, but also brokerage services such as pledges, transactions, and loans.

Over the past year, BitGo's asset management scale has nearly doubled, showing that it is ready for the open market. However, apart from its August 2023 valuation of 1.75 billion US dollars, no further news has come out until its secret IPO application is made public.

Are cryptocurrency company IPOs a safe investment choice?

At a time when US stocks are at historically high levels with the crypto market, it's hard to assert that any investment is absolutely safe.

For investors interested in participating in these IPOs, they may be able to seize the opportunities brought by the “first day surge” and subsequent optimism when listing IPOs. Brokerage firms such as Robinhood and SoFi even allow investors to subscribe for shares at the issue price. And for long-term holders, a close look at the company's financial situation is necessary — although most of the data has not been made public.

Therefore, if you are convinced that the golden age of the crypto market is still ahead, and the fundamentals of these companies are strong, it may make sense to invest in their IPOs. But we must be clear: there is never 100% certainty in this fickle market.