Bakkt’s digital asset market will be announced on the New York Stock Exchange in 2021, which may allow more providers of cryptocurrencies to follow. On January 11, the intercontinental exchange announced that the cryptocurrency market in Bakkt will soon be listed on the public exchange on the New York Stock Exchange. This will be done through a merger with the specialized company VPC Impact Acquisition Holdings.
The phantom company will be used to merge with Bakkt to enter the stock market without a stock exchange listing. Preliminary reports show that Bakkt will be valued at more than $ 2 billion after the merger, and Oslo Børs intends to raise an additional $ 532 million to fund the further development of its app, wallet app and rewards aimed at retail users, which are expected for launch. in March.
The company said that the completion of the merger is expected in the second quarter of 2021. At that time, Bakkt Holdings Inc. was recently listed on the stock exchange.
Most investor presentations by the US Securities and Exchange Commission were held. The document describes the likelihood that the cryptocurrency market will reach $ 3 billion by 2025, confirming the potential value of this space in the coming years. The total market value of cryptocurrency exceeded $ 1 trillion for the first time in January 2021.
Bakkt CEO Gavin Michael told the Cointelegraph that the merger makes sense given how much capital has already been drawn into the cryptocurrency area and the potential growth he expects over the next three years:
“Both Bakkt and VPC believe that there is enormous potential for creating the nearly $ 2 trillion digital asset market that exists today, and many other assets to be created because such a market exists for both brands and consumers.” …
Michael added that the merger will give Bakkt access to the capital it needs to expand and give consumers more opportunities to raise trillions of dollars in various digital assets. The company also expects to capitalize on the brand recognition that will be the result of becoming a listed company.
And an indication of the future?
Matt Greenspan, cryptocurrency analyst and founder of the consulting company Quantum Economics, told Cointelegraph that the timing of the merger and Bakk’s decision to go public are not surprising given that the cryptocurrency markets are currently booming.
In a sign that the move will undoubtedly benefit PACCT, Greenspan also agreed that the IPO payment is an indicator that the traditional financial sector is beginning to recognize crypto- and blockchain-focused businesses as mature and valuable: “This is a reflection of where they are companies in the cycle. Their lives and how it coincides with the willingness of the traditional market to accept them. ”
While some large institutional investors such as MicroStrategy have made waves in the industry in recent months by buying billions of dollars in bitcoin (BTC), Greenspan highlighted the effectiveness of diversifying investments in this area. While owning cryptocurrencies is an easy way to access the ecosystem, Greenspan said investing in the right companies can be more rewarding:
“All investors have a natural desire to be as different as possible. Just as a person with a portfolio of gold would also invest in mining stocks, or an oil magnet would invest in its industry. Investing in a direct company can often be more profitable than buying a symbol, whose value is not known. ”
Joel Edgerton, CEO of US cryptocurrency exchange bitFlyer, told Cointelegraph that the timing of the IPO was the right one given the current market growth and the strong interest in cryptocurrencies. He also offered an alternative position on the reasons for continued growth, suggesting that small investors and independent companies are driving the cryptocurrency boom: “Coinbase and Bakkt use the IPO window to allow investors to host and take advantage of an exit event. the subsequent publicity of their first step in strengthening their brands. ”
Edgerton also believes in the tendency of smart investors to finance cryptocurrency companies without buying BTC or other altcoins. The lack of opportunities for widespread access to cryptocurrencies also plays a role:
“Investors have a certain appetite for entering the cryptocurrency area by investing in cryptocurrency companies without having direct ownership of cryptocurrency assets. […] Buying shares and indirect gains from growth in the industry is absolutely attractive. Since not yet.