By
Steve Muchoki
April 26th, 2024
The Kraken public market scheduled debut comes off as the third being reported for crypto-friendly trading platforms.
United States-based cryptocurrency exchange Kraken is considering a 2022 stock market debut, according to a report from Fox Business reporter, Charles Gasparino. Per the claims, the company’s executives are eying the move which will either be through an Initial Public Offering (IPO) or via a merger with a Special Purpose Acquisition Company (SPAC).
In Gasparino’s own words, Kraken “execs eying going public possibly through a SPAC or IPO possibly sometime next year as online crypto exchange’s customer growth ramps up; industry sources expect a raft of crypto SPACs this summer and with that, much more regulatory scrutiny.”
The cryptocurrency market, particularly of exchanges in the United States of America is seeing unprecedented growth, informing their choices of considering broader expansion into the public markets. The US still lags behind in providing the needed embrace for digital currencies, limiting mainstream investors from partaking in the burgeoning asset class, but this is set to change with the continuous stream of blockchain and crypto-based firms into the broader market.
With a public listing, investors may yet have a cut of the growing trend, as the Securities and Exchange Commission (SEC) has still not officially permitted the launch of Bitcoin Exchange-Traded Fund (ETF) product to be floated in the country, a regulation backed avenue for corporate traders to gain exposure to the relatively new asset class without directly owning it.
Based on the Kraken potential market debut, Coindesk confirmed earlier insinuations by the company’s Chief Executive Officer Jesse Powell to go public but given the firm has the right valuation. The trading platform’s spokesperson also affirmed the 2022 public market debut for the outfit, but ruled out the option of a SPAC, saying the company is “too big” for that.
Kraken Stock Market Debut: the Third amongst Many to Come
The Kraken public market scheduled debut comes off as the third being reported for crypto-friendly trading platforms. The previous two are from the Coinbase exchange and social trading platform eToro.
For Coinbase, the company led by Brian Armstrong has filed its S-1 application with the SEC, and a valuation of $100 billion. Coinbase’s progression into the stock market will serve as a testament to the growth potentials of the cryptocurrency industry and an action call for mainstream investors to watch out for.
eToro on the other hand is reportedly considering a merger with Betsy Cohen’s SPAC, a deal that will earn both outfits a combined valuation of $10.4 billion. While a formal announcement of this arrangement is yet to be made, eToro’s global growth and its estimated valuation of $9.6 billion make it ripe for the broader market.
Kraken’s position in the US is crucial for the continuous growth of the industry, as the firm’s banking charter, secured under Wyoming state laws will further aid the company in rolling out competing products to what traditional banks are offering.
