What does the latest cryptographic stock market for the market mean? Aaron Brogan of Brogan Law breaks down it into the cryptocurrency newsletter today.
Then, Jean-Marie Mognetti, CEO of Coinshares, provides information from their latest survey on investors information about what customers are looking for their advisers in terms of crypto support in Ask A Expert.
Please note that there will be no newsletter next week. We take the week of leave instead of the holidays – we wish you a good Canada Day and a day of independence for those who celebrate. We will come back on July 10.
– Sarah Morton
Cryptocurrency and public procurement
Cryptocurrency is generally considered an alternative to traditional securities markets. Recently, this trend can have reversed, because cryptocurrency is increasingly a factor on public stock markets.
Since January, there have been three main IPOs on cryptography:
May 14, 2025 – Etoro Group LTD., a commercial platform, collected around $ 619 million in its initial offer, evaluating the company at around 5.6 billion dollars. Its market capitalization has since slightly decreased to $ 5.17 billion.
May 16, 2025 – Galaxy Digital Inc. has been set up from the Toronto Stock Exchange at Nasdaq, raising around $ 602 million in a primary and mixed secondary action for $ 19 per share. The agreement estimated the company at just over $ 8 billion. Its market capitalization has since settled at around 7.19 billion dollars.
June 5, 2025 – Circle Internet Group Inc., the USDC issuer, raised approximately $ 1.05 billion in its IPO, selling $ 34 million each. The offer initially estimated the company at around 8 billion dollars, but a positive post-offering rally pushed its market capitalization to $ 43.9 billion.
Each of these IPOs are remarkable, given the extremely punitive regulatory environment only a year ago, but Circle is in a separate class. Circle collected the most money and, afterwards, its stock broke out by many multiple, indicating an overwhelming demand. Pop was so extreme, in fact, that some estimated that the company “left money on the table” and questioned the motivations of the bankers involved.
In the wake of Circle’s success, a number of other cryptocurrency companies are considering public offers. On June 6, Gemini announced that he had submitted a confidential S-1 to the SEC, and on June 10, it was reported that the bruises followed. Many other companies, including Kraken, Bitgo and Consensys, have also considered public turns.
However, for these aspirants, the question of $ 20 billion remains: why did the circle go beyond expectations? Here are my three theories:
1. Public market comps
Circle was not the first Crypto company to surpass. More famous, Microstrategy of Michael Saylor (D / B / A Strategy) In recent years, it has become a Bitcoin portfolio company with a Croupie software company. Currently, the strategy holds 592,100 bitcoin, valued at around $ 62 billion, compared to around $ 460 million in annual income from its inherited activity sectors.
The strategy is a listed company, allowing retail customers with brokerage accounts to buy its shares and exhibit themselves in Bitcoin. In theory, its market capitalization should be the sum of (1) The value of his bitcoin, more (2) A little minimis bonus for the rest. Generously, this could cost $ 66 billion. But in reality, its market capitalization is $ 101 billion, which prompted commentators to suggest that “the US stock market will pay $ 2 (or more) For $ 1 crypto. »»
The Circle business model involves buying conventional vanilla financial assets (mainly short -term American cash bills) Then issue a cryptocurrency – roughly the opposite of the strategy – but it can benefit from the same premium.
2. The act genius
In recent months, Congress has advanced the law on engineering, legislation intended to govern the regulatory treatment of stablecoins. This bill was adopted by the Senate last week and should become law in the near future.
In this theory, genius will bring regulatory clarity, allowing the stable ecosystem to prosper. In particular, the bill includes a prohibition of yield, which prohibits stable issuers from transmitting the yields they gain from warranty holding to tokens holders. This may increase the value of transmitters.
However, there is the probability that the bill will bring increased competition from banks, such as recently announced tokenized deposits of JPMorgan. According to the founder of Stablecon, Nik Milanović, “If I was in a circle, I would be concerned with the banking issuers of Stablecoins.”
3. Treasury instability
Finally, there is the macro. The market factors have increased treasury yields in recent months, and if this trend continues, it could be very lucrative for stablecoin issuers. Most of the issuers’ income come from yields on the guarantee they have, so when they increase, the transmitters take advantage of it.
Above all, the greatest risk that these issuers are confronted are the rates of return to zero, in which case they would lose the majority of income and may not be long. Perhaps the record for the quality of the American sovereign debt has increased the long-term value of this activity class.
Look forward to
Of course, Circle’s climb could also be a foam. Circle’s market capitalization is now more than half of Coinbase. For lovers of 10 K, it is a bit confusing, because Coinbase has a contractual right to half the reserve income of Circle, as well as other sectors of activity.
For more reading, see the IPO coverage on Circle.
– Aaron Brogan, founder and managing partner, Brogan Law
Ask an expert
Q. What do the survey data say?
A. The survey reflects a clear change in investor behavior: digital assets are no longer a secondary conversation. They have entered the heart of how investors think of wealth – and they do not wait for authorization. Nearly 9 out of 10 crypto holders are planning to develop their allowance this year. It is not a media threshing, it is a commitment. However, what has stood out the most is the tension: investors are clearly looking for advice, but they don’t always trust the advice offered to them. We see a generation of investors who are independent, well informed and fully committed. They do not reject the role of the advisor, but they raise the bar. They want intelligent and transparent conversations on the crypto, and they expect their advisor to follow the pace. It is a reality that industry must face the front.
Q. What does that mean for advisers?
A. This is an opportunity for advisers to strengthen customer confidence by expanding their expertise. Customers are not only asking for access to crypto – they ask if their advisor really understands it. And if 29% of them say that a lack of experience or bad communication around risk would make them move away, it is not a marginal problem. Advisers always play an essential role, but the model has evolved. What customers want is a strategic insight and transparency. They want someone who took the time to understand the ecosystem and can speak of the risk, the guard and the structure of the products. If an advisor can do so, he does not only protect customer capital, he gains long -term confidence. This is the difference between offering a product and gaining a relationship.
Q. What type of specific support is it to search for customers?
A. Customers are looking for advice that establishes a balance between opportunity and caution. The most appreciated support is not to choose tokens – it is a question of managing the risks, navigating the regulations and accessing secure vehicles such as ETFs or trusts. More than half of investors, we have spoken to say that risks monitoring is one of the most important roles that an advisor can play in cryptographic space. It is a huge opening. Especially for younger investors or subnight, the crypto is the place where they build – and they need enlightened advice. Advisers who occupy this role in a thoughtful way can help shape the next wealth creation phase.
– Jean-Marie Mognetti, CEO, Coinshares
Continue to read
- The American Federal Housing Financing Agency examines if crypto and Bitcoin holders could be used to qualify for mortgages.
- Texas has become the first American state to create a Bitcoin reserve funded by public funded.
- The US Federal Reserve Board announced on June 23 that it no longer included the risk of reputation in its banking examination programs, eliminating an obstacle to banks to support cryptographic companies.
