It seems that diversification into foundational technologies (tokens) and related company stocks is becoming increasingly important in the field of cryptocurrency investment. Matt Hogan, CIO of Bitwise, analyzed that investors should consider exposure to both cryptocurrency assets and related stocks, citing the successful case of Circle's IPO.
On the 5th, Circle, the company that issues the world's second-largest stablecoin USDC, conducted its IPO on the New York Stock Exchange, making a strong start with a 167% increase in stock price on the first day of trading. The demand for the company's shares reached 25 times the number of shares offered, and the trading price has been approximately four times higher than the public offering price of $31.
The rapid growth of the stablecoin market is attracting attention to the company's stock. Over the past five years, the total assets under management of stablecoins have expanded from $4 billion to $250 billion, with the U.S. Treasury forecasting a reach of $2 trillion by 2030. In the current environment of short-term interest rates around 4%, the industry as a whole is generating approximately $10 billion in high-margin revenue annually.
Mr. Hogan pointed out the decentralization of value accumulation in the cryptocurrency ecosystem. He analyzed that there are long-term growth opportunities in both foundational technologies such as Ethereum and Solana, as well as in application companies like Circle. Circle is leveraging blockchain infrastructure at a low cost to build services on a global scale.
In this context, he recommends a decentralized strategy that combines investments in foundational technologies and stakes in related companies. The number of publicly traded companies utilizing blockchain technology, such as Coinbase, Galaxy, and Mastercard, is increasing, and there are expectations for an expansion of investment opportunities due to the synergistic growth of the entire cryptocurrency ecosystem.
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The success of the Circle IPO indicates a new phase in cryptocurrency investment - Analysis by Bitwise CIO
It seems that diversification into foundational technologies (tokens) and related company stocks is becoming increasingly important in the field of cryptocurrency investment. Matt Hogan, CIO of Bitwise, analyzed that investors should consider exposure to both cryptocurrency assets and related stocks, citing the successful case of Circle's IPO.
On the 5th, Circle, the company that issues the world's second-largest stablecoin USDC, conducted its IPO on the New York Stock Exchange, making a strong start with a 167% increase in stock price on the first day of trading. The demand for the company's shares reached 25 times the number of shares offered, and the trading price has been approximately four times higher than the public offering price of $31.
The rapid growth of the stablecoin market is attracting attention to the company's stock. Over the past five years, the total assets under management of stablecoins have expanded from $4 billion to $250 billion, with the U.S. Treasury forecasting a reach of $2 trillion by 2030. In the current environment of short-term interest rates around 4%, the industry as a whole is generating approximately $10 billion in high-margin revenue annually.
Mr. Hogan pointed out the decentralization of value accumulation in the cryptocurrency ecosystem. He analyzed that there are long-term growth opportunities in both foundational technologies such as Ethereum and Solana, as well as in application companies like Circle. Circle is leveraging blockchain infrastructure at a low cost to build services on a global scale.
In this context, he recommends a decentralized strategy that combines investments in foundational technologies and stakes in related companies. The number of publicly traded companies utilizing blockchain technology, such as Coinbase, Galaxy, and Mastercard, is increasing, and there are expectations for an expansion of investment opportunities due to the synergistic growth of the entire cryptocurrency ecosystem.