IPO Listing, A Quicker Route For Bitcoin Into the Mainstream

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October 5, 2018 by
IPO Listing, A Quicker Route For Bitcoin Into the Mainstream

While majority await a traditional declaration by SEC and other major regulatory bodies for Bitcoin and cryptocurrency to become fully recognized as mainstream entities, they are already finding qualitative application through other viable channels.

Mainstream adoption of Bitcoin and cryptocurrency has become a major subject of discussion over the years. Coupled with other forms of decentralized technologies, the last decade has seen the emergence of disruptive solutions that promise to change the way that transactions and other forms of interaction are carried out, especially within the cyberspace.

Bitcoin Companies Are Trading Publicly

While governments and regulatory institutions are continuing in their efforts towards achieving an acceptable regulatory framework without stifling innovation, companies and establishments around the industry keep springing up and growing in terms of scale.

For some time now, Bitcoin and other blockchain companies have been finding listings, with their stocks traded across a number of mainstream exchanges. Some of these establishments are turning out impressive numbers that are suggesting substantial confidence in them among mainstream investors.

A typical example of a Bitcoin company that has gone public and is showing impressive result is Canada based bitcoin ATM/Exchange, Netcoins. Having gone public in March 2018, the company’s stock in the last 30 days alone is up almost 100%. This is happening at a time when bitcoin and the general crypto market is having a protracted bearish experience.

The Founder of Netcoins, Michael Vogel predicts a future where several other crypto based companies will go the IPO route rather than the unregulated ICOs that currently populate the industry

“Netcoins and other Canadian-listed public companies have provided a strong template for what is possible for a crypto company on a stock exchange, says Vogel. “ETF aside, I think in the long-term companies like Coinbase and Binance will eventually go the IPO route (likely years down the road), much as Google and Amazon did as part of the early internet age”.

An Influx Of Institutional Investors

A curious case though is the plight of one of the foremost bitcoin stock in existence, Grayscale Bitcoin Investment Trust’s (GBTC), whose shares are down around 80% since December last year. While a part of the reason for this slump could be associated with the fall of bitcoin price, a key internal factor has also been identified.

According to a Bloomberg report, GBTC’s valuation decline has been blamed on its expense fees. For every $1,000 invested, GBTC charges $20 representing a fee of 0.2%. This is high when compared to the average equity mutual fund expense ratio of just 0.59%.

Barring peculiar internal hitches, it has been noted that the influx of funds towards bitcoin companies is increasingly becoming an affair for institutional investors. This is a different narrative from the erstwhile reputation of an exclusive venture for high networth individuals as obtained in previous times.

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