Overvalued Cryptocurrency Stock Supported by Peter Thiel, According to Compass Point's Assessment

Bullish's U.S. Market Entry Hinges on CLARITY Act and NYDFS Regulation

Bullish, the crypto trading platform, is eyeing a potential entry into the U.S. markets, but analysts believe that this move may not happen until the CLARITY Act is passed. Currently, the New York Department of Financial Services (DFS) is viewed as the de facto U.S. regulator for the crypto industry, with Bullish requiring a New York BitLicense to access the U.S. institutional market and navigate regulatory hurdles.

Bullish, which debuted on the New York Stock Exchange last month, has been making waves in the crypto industry. The company, which allows clients to buy, sell, and bet on the future price of digital coins and tokens, with a focus on institutional investors, saw its shares hit as high as $118 after being offered for $37 in the IPO. However, shares closed down 12% on Wednesday, trading a little over $54.

The competitive pricing of Bullish is believed to help it take market share from Coinbase, the American exchange that dominates institutional spot markets. If Bullish secures a U.S. license, it could become a formidable competitor to Coinbase in institutional trading, given its low fees and focus on institutional investors.

The analysts at Compass Point have a neutral rating for Bullish, with a $45 price target. They note that Bullish seems overvalued with shares trading at 110 times their core operating profit and 68% over its IPO price. The analysts are wary about Bullish's ability to crack the U.S. market due to the pending CLARITY Act and New York State's BitLicense.

Meanwhile, other crypto-focused companies have also made public offerings recently. San Francisco-based Circle's stock tripled from its original IPO price after its NYSE debut in June and is currently trading close to $119. eToro's stock closed 29% higher following its Nasdaq debut in May.

Despite the current challenges, Bullish CEO Tom Farley stated that the company timed its IPO to coincide with the intended growth of the digital assets industry. The analysts predict a better buying opportunity for Bullish within 1-2 quarters. However, the approval of the Bitlicense and the passing of the CLARITY Act will play a crucial role in determining Bullish's entry into the U.S. markets.

Overvalued Cryptocurrency Stock Supported by Peter Thiel, According to Compass Point's Assessment