What do the latest cryptographic opi mean for the market? Aaron Brogan of Brogan Law broke him in the Crypto For Advisors Bulletin today.
Then, Jean-Marie Mognetti, CEO of Coinshares, provides information from her latest Investor Insights survey about what customers are looking for their advisors in terms of cryptographic support in Ask an expert.
Keep in mind that there will be no bulletin next week. We are taking the week off instead of the holidays: we wish him a happy day of Canada and the Day of Independence for those who celebrate. We will return on July 10.
– Sarah Morton
Cryptocurrencies and public markets
Cryptocurrency is usually seen as an alternative to traditional values markets. Lately, this trend may have been reversed, since cryptocurrency is increasingly a factor in public capital markets.
Since January, there have been three main encryption IPO:
May 14, 2025 – Etoro Group Ltd., a negotiation platform, raised approximately $ 619 million in its initial offer, valuing the company by approximately $ 5.6 billion. Since then, its market capitalization has decreased slightly to $ 5.17 billion.
May 16, 2025 – Galaxy Digital Inc. left the list of the Toronto Stock Exchange to Nasdaq, raising approximately $ 602 million in a sale of mixed primary and secondary shares with a price of $ 19 per share. The agreement valued the company in just over $ 8 billion. Since then, its market capitalization has been resolved at approximately $ 7.19 billion.
June 5, 2025 – Circle Internet Group Inc., the USDC issuer, raised approximately $ 1.05 billion in its opi, selling 34 million shares at $ 31 each. The offer initially valued the company in around $ 8 billion, but an acute rally after the offer has brought its market capitalization to $ 43.9 billion.
Each of these opi is remarkable, considering the extremely punitive regulatory environment of only one year ago, but Circle is in its own class. Circle raised the greatest amount of money, and after immediately, its stock arose through many multiples, indicating an overwhelming demand. Pop was so extreme, in fact, that some felt that the company “left money on the table” and questioned the reasons for the bankers involved.
Following the success of Circle, a series of other cryptocurrency companies are considering public offers. On June 6, Gemini announced that he had presented a confidential S-1 to the SEC, and on June 10, it was reported that it followed the reach. According to reports, many other companies, including Kraken, Bitgo and Consensys, have also considered public turns.
However, for these applicants, the $ 20 billion question remains: Why does Circle exceed expectations? Here are my three theories:
1. Public Market Comps
Circle was not the first cryptographic company to overcome. The most famous, Michael Saylor’s microstratge (D/b/a strategy) In recent years, it has become a Bitcoin holder company with a group software business. Currently, the strategy has 592,100 bitcoin, valued at approximately $ 62 billion, compared to approximately $ 460 million in annual revenues of its inherited business lines.
The strategy is a company that quotes on the stock market, which allows retail customers with brokerage accounts to buy their actions and obtain exposure to Bitcoin. In theory, its market capitalization must be the sum of (1) The value of your bitcoin, more (2) Some premium minimis for the rest. Generally, this could be $ 66 billion. But in reality, its market capitalization is $ 101 billion, which leads to commentators to suggest that “the United States stock market will pay $ 2 (or more) for $ 1 in cryptography. “
Circle’s business model involves buying conventional vanilla financial assets (mostly brief Treasury dates of the USA. UU.) And then emit the cryptocurrency, approximately the opposite of the strategy, but can benefit from the same premium.
2. Genius law
In recent months, Congress has advanced the genius law, legislation aimed at governing the regulatory treatment of the stables. This bill approved the Senate last week and is expected to become law in the near future.
In this theory, the genius will bring regulatory clarity, allowing the stablecoin ecosystem to prosper. In particular, the bill includes a performance prohibition, which will not allow Stablecoin issuers to transmit the yields that they win by keeping the guarantee to the tokens holders. Perhaps this increases the value of the emitters.
However, it complicates this is the probability that the bill will provide greater competition of banks, such as recently announced tokenized deposits of JPMorgan. According to the founder of Stababecon, Nik Milanović, “if I were Circle, I would worry about Stablecoins banking emitters.”
3. Treasury instability
Finally, there is the macro. Market factors have increased treasure yields in recent months, and if this trend continues, it could be very lucrative for Stablecoin issuers. The majority of the issuer’s income comes from yields in the guarantee they have, so when they increase, the issuers benefit.
It is important to note that the greatest risk that these emitters face are the rates that return to zero, in which case they would lose most income and may not be solvents for a long time. Perhaps a reverence of the quality of the American sovereign debt has increased the long -term value of this kind of business.
Thinking about the future
Of course, Circle’s rise could also be foam. Circle market capitalization is now more than half than coinbase. For 10-K enthusiasts, this is a bit disconcerting, since Coinbase has a contractual right to half of Circle’s reserve income, as well as other business lines.
For additional reading, see the coverage of the IPO of Circle.
– Aaron Brogan, founder and managing partner of Brogan Law
Ask an expert
Q. What do the survey data say?
TO. The survey reflects a clear change in investor behavior: digital assets are no longer a secondary conversation. They have entered the core of how investors think about wealth, and are not waiting permission. Almost 9 out of 10 cryptocurrencies plan to increase their allocation this year. That is not exaggerated, that is the commitment. However, what stood out the most was tension: investors clearly seek guidance, but do not always trust the council offered. We are seeing a generation of self -directed investors, well informed and totally committed. They are not rejecting the role of the advisor, but they are raising the bar. They want intelligent and transparent conversations about cryptography, and expect their advisor to stay in their rhythm. That is a reality that the industry has to face in front.
Q. What does this mean for advisors?
TO. It is an opportunity for advisors to strengthen customer confidence by expanding their experience. Customers not only ask for access to cryptography, but ask if their advisor really understands. And if 29% of them say that lack of experience or poor communication around risk would move away, that is not a marginal problem. The advisors still play an essential role, but the model has evolved. What customers want is strategic vision and transparency. They want someone who has taken the time to understand the ecosystem and can speak fluently about risk, custody and product structure. If an advisor can do that, they not only protect the capital of the client, but they are gaining long -term confidence. That is the difference between offering a product and gaining a relationship.
Q. What specific type of support do customers look for?
TO. Customers seek guidance that achieves a balance between opportunity and caution. The most valued support is not about choosing tokens: it is about managing the risk, navigating the regulation and accessing safe vehicles such as ETF or trusts. More than half of the investors, we talk to say that risk supervision is one of the most important roles that an advisor can play in cryptographic space. That is a great opening. Especially for younger investors or Sub-HNW, Crypto is where they are building, and need informed guidance. Advisors who participate in that role can carefully help shape the next phase of wealth creation.
– Jean-Marie Mognetti, CEO, Coinshares
Continue reading
- The Federal Housing Finance Agency of the United States is reviewing if cryptography holdings such as Bitcoin could be used to qualify for mortgages.
- Texas has become the first state of the United States to create an independent and publicly funded public bitcoins.
- The United States Federal Reserve Board announced on June 23 that it will no longer include the risk of reputation in its bank exam programs, eliminating a barrier for banks to support cryptographic companies.
