As always, welcome again to another week's edition of Overbit Weekly Round Up, where we try and step back from some of the madness in every day, 24/7 markets and look at some of the more significant themes, threads and narratives developing in the financial and especially the cryptocurrency world.
We pick up this week's edition with where we left off last week's - the Coinbase IPO.
After long and heavy anticipation, $COIN is officially live on the US stock market, listed on Nasdaq, to be specific. Coinbase marks their first day - Wednesday, 14 April - as their first day as a publicly-traded company.
This day truly marks one of the most significant landmarks in the cryptocurrency industry, or as the Financial Times puts it, a "coming-of-age moment for cryptocurrency". The price slowly drifted downward throughout the day, presumably as early investors cashed out on one of the first (and the biggest) potential listings for the cryptocurrency market. Nevertheless, by the close on Wednesday, the $COIN market cap sat at $65.4bn. To put it into perspective, the New York Stock Exchange's parent company, ICE, is worth $67bn, according to the Financial Times.
On top of the exposure and legitimacy the Coinbase listing brings to the cryptocurrency markets, the required public disclosures also allows everyone to take an inside look at Coinbase and its operations. The numbers paint a sprawling picture, with 1,700 employees and almost 60 million registered users. Their revenue is also up 800% from Quarter One of 2020, totalling nearly $1.8 billion in revenue.
While there are a million storylines you could draw from all the different Coinbase narrative, one thing remains sure: the Coinbase listing is undoubtedly a story that will be remembered and retold for years to come as one of the earliest hallmarks of mainstream cryptocurrency adoption.
Although the United States remains reluctant to approve a Bitcoin exchange-traded fund (ETF), Canada's First Inverse Bitcoin exchange-traded fund (ETF) will debut on the Toronto Stock Exchange on Thursday.
Horizons ETF is launching a fund (ticker BITI) to enable investors to take short positions on Bitcoin futures. According to a release, Todd Rosenbluth, director of ETF research for CFRA Research, stated, "Many investors have a view on Bitcoin, and this new ETF will provide an opportunity for those that believe the current price is not justified and that Bitcoin is overdue for a correction,".
The announcement comes as proposals for a standard Bitcoin ETF pile up in the United States, with at least eight companies, including Fidelity Investments Inc. and Galaxy Digital Holdings Ltd., putting their hats in the ring. The company that receives the first approval is likely to see massive demand, leading issuers to proceed with proposals amid ongoing regulator scepticism.
Every Bitcoin ETF application has been denied by the SEC since 2013, citing concerns about manipulation and illegal activity. Meanwhile, Canadian authorities have been more lenient than their counterparts in the United States, approving ETFs monitoring Bitcoin, blank-check businesses, psychedelics, and marijuana.
Horizon's BetaPro Inverse Bitcoin ETF will provide up to 100 per cent of the inverse daily output of an index that "replicates the returns generated over time through exposure to long notional investments in Bitcoin futures."
"Buying HBIT and BITI is as easy as buying any stock or other ETF through a broker and doesn't require investors to open up separate cryptocurrency accounts," said Steve Hawkins, chief executive officer of Horizons ETFs, in the statement.
It is clear that various countries are welcoming regulatory changes to not lose out on the "crypto revolution," and the US seems to be behaving cautiously in contrast to other countries at the moment, and that’s something we’ll continue to monitor.
That concludes this week's Overbit Weekly Round Up; thanks for reading, and we'll see you next week.