Coinbase IPO and its effect on Crypto

On April 14th Coinbase will officially list on the Nasdaq under the ticker COIN. The cryptocurrency exchange is picking the perfect time to list with its exchange trading volumes at all time highs. The Crypto exchange behemoth is very popular and is looking to list for around $400 a share when public trading on it goes officially live at the opening of the Nasdaq on Wednesday.

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With such a high share price, the question is if it’s wise to buy on the open on Wednesday or wait for a more favorable price. There is no doubt that this is a highly anticipated IPO and it will bring stock market exposure to the Cryptocurrency and Bitcoin world. Many companies in the past have sought to get a Bitcoin ETF listed on the stock exchange yet the SEC has shot them down every time. A Bitcoin ETF would give ordinary stock market investors exposure to directly investing in Bitcoin through an ETF and would no doubt have a positive impact on the price and would give Bitcoin and cryptocurrency more credence to mainstream investors. Coinbase listing on the Nasdaq will now give stock market investors indirect exposure to Bitcoin and cryptocurrency as the exchange is directly related to the trading of Bitcoin and the many other cryptocurrency products it offers. It’s possible that the Coinbase listing may finally give the SEC the catalyst it needs to finally approve a Bitcoin ETF.

With such a high share price it’s hard to say if the price will soar on April 14th or drop as this will be the first Cryptocurrency exchange listing on the Nasdaq. I feel that it would be safer to watch this one for a few days and get a feel of how the market responds to this listing. Looking long term then its safe to say that the price of COIN will be directly linked to the overall Bitcoin and cryptocurrency market. If a crash happens then exchange trading will dry up and therefore lead to steep drop in the value of COIN. Currently we are in the midst of a major Bitcoin and cryptocurrency bull market so it appears to be smooth sailing for COIN on April 14th.

It’s encouraging to see that Coinbase will be listing its IPO on April 14th and I wish them the best of luck. This is just another event that will provide positive tailwinds for Bitcoin and other cryptocurrencies going forward.

Once again this is purely my opinion and shouldn’t be used as investment advice. Good luck to all.

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