Over the past week I've announced two important players to Bitcoin being Goldman Sachs and BlackRock Global entering the Cryptoshphere. You're probably wondering what's happening why isn't Bitcoin and markets increasing?
Well, at current these two global asset fund managers are waiting. They're at the door, they have written up their policies and procedures they have researched cryptocurrancy and put together portfolio packages for potential clients wanting to enter the market.
At the moment these major players are locked out. They're at the door waiting to get in but can't get access as yet.
Due to government regulations in various countries around the world investments can only be purchased into through reputable and accepted markets. As many crypto exchanges operate outside of government regulations they are unable to be used by asset management institutions. But that's about to change.
Coinbase the world's #1 cryptoexchange is currently undertaking its registration. On December 17 Coinbase announced that it has confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission (SEC). The SEC is currently undertaking a review and the Initial Public Offering is tipped to.occure in the first quarter of 21.
How much will a share be worth?
No one really knows as yet but we can make a quick assumption that initial offerings will not be that much. Coinbase has overseen $US260Billion worth of transactions since it's inception in 2012. However has only generated $US500million in revenue through fees it charges for transactions.
But that's not what the importance of it is, I think once Coinbase goes public shares will be under $AUD20 and grow rapidly. But again that's not the kicker here.
Coinbase's public listing will make it the first registered and accepted cryptocurrancy exchange. Meaning it will open the door to major investors who will legally be allowed to invest in Cryptocurrancy. What ever coins are listed in Coinbase will become future leaders in the cryptoshphere. Not to mention Coinbase will also commence paying dividends to share holders.
The door that will be unlocked will see the global crypto market explode. I'd anticipate on day 1 there will be a slight bleep as new players hustle waiting to enter dive into the market. The rest will slowly arrive over the following 12 months. 2021 will be a big year in the cryptoshphere once Coinbase is publicly listed. But each year after that will see significant increases and records broken.
I'd even anticipate seeing Bitcoin hit $US80,000 this year and a roll out of payment methods as many small investors will want to get their hands on some BTC.
I think phase 2 of major asset management funds won't occur until around 22 - 23 when shops will have Bitcoin wallets for people to purchase using their Bitcoin.
Last years market crash almost occurred again this year but quickly recovered, that is a sign of things to come and peoples confidence in cryptocurrancy.
Keep your eyes peeled on any news about Coinbase's public listing. You can follow me also and I'll provide you more updates on anything I hear.
As always, what are your thoughts on Coinbase's IPO? Do you think it is the first of many to come or is it just hype?