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What do the latest IPO for the market mean? Aaron Brogan Brogan Law interrupts this in today’s cryptor for Advisors Newsletter.
Then, Jean-Marie MognettiCeo Coinsharesprovides knowledge of their latest Survey investor Insights What clients are looking for from their advisors in terms of crypto support, to ask an expert.
Please note that there will be no newsletter next week. We take a week off instead of holidays – we wish you a happy day Canada and the day of independence for those who celebrate. We will return on 10 July.
Cryptomera and public markets
Cryptocurrencies are usually considered alternative For traditional securities markets. Recently, this trend could turn because the cryptocurrency is increasingly a factor in the markets with its own capital.
Since January there were three main crypto ipo:
May 14, 2025 – Etoro Group Ltd., a trading platform, received approximately $ 619 million in its initial offer and appreciated the company approximately $ 5.6 billion. Its market ceiling has been slightly decreasing since $ 5.17 billion.
16. May 2025 – Galaxy Digital Inc. She increased the list from Toronto Stock Exchange to Nasdaq and received approximately $ 602 million in mixed primary and secondary shares for $ 19 per share. The agreement appreciated the company for just over $ 8 billion. Its market ceiling has settled approximately 7.19 billion dollars.
June 5, 2025 – Circle Internet Group Inc., issuer of USDC, received approximately $ 1.05 billion in its IPO and sold 34 million shares for $ 31 per piece. The offer originally appreciated the company at approximately $ 8 billion, but a sharp after the seating area pushed its market ceiling on $ 43.9 billion.
Each of these IPOs is remarkable, due to the extremely repressive regulatory environment a year ago, but Circle is in its class. Circle received the most money and found many multiples in the immediate consequences of his stock, suggesting stunning demand. Pop was actually so extreme that some felt that the company “left money on the table” and questioned motifs participating bankers.
As a result of Circle’s success, many other cryptocurrency companies present public offers. June 6, Gemini notified that SEC presented the confidential S-1 and June 10. It was announced that the bull followed. Numerous other companies, including Kraken, Bitgo and Consensy, reportedly also considered public turnover.
Yet, for these candidates, a question of $ 20 billion remains: Why did Circle exceed expectations? Here are my three theories:
1. Comps Public Market Comps
Circle was not the first crypt company to overcome. The best known, Microstrategy Michael Saylor (D/B/A Strategy) In recent years he has become a bitcoin holding company with commercial software. Currently, the strategy has 592 100 bitcoins worth approximately $ 62 billion, compared to approximately $ 460 million in annual income from their inheritance lines.
The strategy is a publicly traded company that allows retail customers with brokerage accounts to buy their shares and get Bitcoin exposure. Theoretically, his market ceiling should be the sum of (1) the value of its bitcoins plus (2) Some de minimis premium for the rest. It can be $ 66 billion generously. But in fact is his market ceiling $ 101 billioncall commentators suggest that “the US stock market will pay $ 2 (or more) for a crypt of $ 1. ”
Circle’s business model includes the purchase of conventional vanilla financial assets (mostly short -term accounts for the Treasury) And then the release of the cryptocurrency – the opposite of the strategy – but it can benefit from the same premium.
2.
Congress has advanced over the past few months Genius ActA piece of legislation aimed at adjusting the regulatory treatment of stablecoins. This draft law passed through the Senate last week And it is expected to become a law in the near future.
In this theory, Genius will bring regulatory clarity, allowing stablecoin ecosystem to prosper. In particular, the bill includes a proceeding proceeds that are forbidden by Stablecoin issuers in the transfer of revenues that earn from the possession of the collateral to the token holders. It may increase the value of issuers.
However, this complicates the probability that the bill will bring increased competition from banks, such as JPMORGAN recently notified Tokenized deposits. For Stable Founder Nik Milanovic: “If I were a circle, I would have worried about Bank issuers Stablecoins.”
3. The instability of the Treasury
In the end there is a macro. Market factors pushed up The revenues of the Ministry of Finance In recent months, and if this trend continues, it could be very lucrative for Stablecoin issuers. Most of the issuer’s revenue comes from the revenues of the collateral they hold, so when you get out, the publishers benefit.
Importantly, the greatest risk that these issuers face are the rates of return to zero, in which case they would lose most of the income and may not be a long solvent. Maybe and regenerate The quality of the American sovereign debt has increased the long -term value of this class of business.
Looking forward to seeing
Of course, the rise of Circle could also be foam. Circle’s market cap is now more than half than Coinbase. For a 10-k enthusiast it’s a bit mysterious how Coinbase has Contract Half of Circle Reserve and other trading lines.
For further reading, see coverage Ipo circle.
– Aaron Brogan, founder and control partner, Brogan Law
Ask an expert
Q: What do the survey information say?
AND. The survey reflects a clear shift in investor behavior: Digital assets are no longer a by -conversation. They entered the core of how investors think of wealth – and they don’t wait for permission. Nearly 9 out of 10 crypt holders plan to expand its assignment this year. This is not hype, it is a commitment. However, the most excelled in tension: investors are clearly looking for leadership, but they do not always trust the advice that is offered. We see a generation of investors who are focused on themselves, well -informed and fully engaged. The unnecessary role of the advisor, but increases the bar. They want intelligent and transparent interviews about crypto and expect their advisors to keep up with them. This is the reality that the industry must face.
Question: What does this mean for advisors?
AND. It is an opportunity for advisors to strengthen clients’ confidence by expanding their expertise. Clients do not only ask for access to the crypt – they ask if their advisor really understands it. And if 29% of them argue that lack of experience or poor communication around the risk would cause them to leave, it is not a marginal problem. Advisors still play a crucial role, but the model has evolved. What clients want is a strategic insight and transparency. They want someone who has taken the time to understand the ecosystem and can fluently speak of the risk, binding and product structure. If the advisor can not only protect the client’s capital, but earn long -term confidence. This is the difference between product offer and earning a relationship.
Q: What specific type of support do clients look for?
AND. Clients are looking for instructions that cause balance between opportunities and caution. The most valuable support is not to select tokens – it is a risk management, navigation and access to secure vehicles such as ETF or Trusty. More than half of the investors we have spoken about the supervision of the risk is one of the most important roles that the advisor can play in the cryptic space. This is a huge opening. Especially for younger or sub-HNW investors, Crypto is a place where they build informed management. Advisors who enter into this role can help shape the next stage of wealth creation.
– Jean-Marie Mognetti, CEO, Coinshares
Continue reading
- The US Federal Housing Financing Agency reviews whether Crypto holdings Like bitcoins, they could be used to qualify for mortgages.
- Texas became the first US state to create a publicly funded, independent Bitcoin reserve.
- The US Federal Reserve Council announced June 23 that it will no longer include Reputation risk In its banking tests, the removal of the barrier to banks to support the company.
