Latest news with #TheGENIUSAct
Sydney Morning Herald
3 days ago
- Business
- Sydney Morning Herald
Why is bitcoin soaring? And is it time to invest?
Despite Nakamoto's original vision of bitcoin replacing cash, these days the cryptocurrency is much more akin to a digital version of gold, as the network is far too expensive and slow to be able to use it as a legitimate cash replacement. Indeed, central banks around the world have said cryptocurrencies are unfit for everyday use, with RBA governor Michele Bullock saying it has 'no role' in the Australian economy. Investors originally saw bitcoin as a 'safe haven' asset separated from the fluctuation of markets. However, recently, institutional investors have flocked to the asset class, with about 6 per cent of bitcoin being held in exchange-traded funds (ETFs). Why is it rallying? Bitcoin and other cryptocurrencies are notoriously volatile, with their valuation regularly dropping or rising by thousands of dollars in mere minutes. However, the recent rally has been more sustained, thanks largely to the influence of Trump. During his campaign, Trump made no secret of his support for cryptocurrencies, promising to make the US the 'crypto capital of the world'. Once elected, he then enacted several policies to promote crypto, including establishing a strategic bitcoin reserve within US Treasury, and holding a crypto summit at the White House. Loading He also released his own Trump-branded cryptocurrency, which has a market capitalisation of $US1.9 billion. Republicans are now attempting to pass three more crypto-friendly bills – The GENIUS Act, The Clarity Act and The Anti-CBDC Surveillance State Act – all of which will create a friendlier regulatory environment for crypto traders and companies, including clarifying when digital assets like crypto tokens are considered securities or commodities. Crypto advocates view these bills as the US government's effective endorsement of the sector and a further legitimisation of bitcoin, despite widespread crime in the industry and real-world use cases for cryptocurrencies still few and far between. How much has the price risen? After bitcoin's creation in 2008, you could buy one for just a few cents, with 10,000 bitcoin famously being used to buy two pizzas in early 2010. As of Wednesday afternoon, one bitcoin was worth about $185,000. Since Trump's election, the asset's price has risen by almost $80,000, or 76 per cent. Should you invest? Obviously, the best time to have bought bitcoin was 2009 – and even then, you would have needed to conveniently forget about it until now. But is it still worth buying even with its heady valuation? 'Yes, we think so,' says Justin Lin, investment strategist at ETF provider Global X. '2025 is shaping up to be a landmark year for bitcoin adoption. This year we've seen some serious signs that investors are starting to value the asset for its fundamental strengths rather simply speculating on its price. Loading 'We think bitcoin is on its way to becoming a portfolio staple across the world, and as adoption grows, price discovery will follow.' Global X believes bitcoin will reach a valuation of $US200,000 by midway through next year. Much of this, Lin says, will be driven by traditional investors through bitcoin ETFs, with the current crop of crypto investors mainly consisting of younger, tech-savvy investors. 'By our calculations, only about 20,000 Australians have invested in ASX-listed bitcoin ETFs. That's shockingly low compared to the US. We take it as a sign that our older investment community still has a lot of catching up to do,' he says. How can you invest? There are a number of online bitcoin exchanges that operate both internationally and in Australia. You can sign up to one and buy bitcoin or other crypto. Keep in mind you don't have to purchase a whole one – you can just buy a fraction of a coin. These exchanges allow you to buy, sell, and store your bitcoin, much like an online stockbroker such as CommSec. The bitcoin ETFs are becoming increasingly popular as a way for traditional investors to purchase the digital asset without having to make an exchange account, with the ETFs available to purchase the same way as any other ASX stock. However, chief executive of investment firm VanEck Asia Pacific Arian Neiron said Australian investors seem to be less willing to invest in crypto than their US counterparts. '[Australian] investors are more cautious about bitcoin exposure, particularly when there is price momentum based on sentiment,' he says.
The Age
3 days ago
- Business
- The Age
Why is bitcoin soaring? And is it time to invest?
Despite Nakamoto's original vision of bitcoin replacing cash, these days the cryptocurrency is much more akin to a digital version of gold, as the network is far too expensive and slow to be able to use it as a legitimate cash replacement. Indeed, central banks around the world have said cryptocurrencies are unfit for everyday use, with RBA governor Michele Bullock saying it has 'no role' in the Australian economy. Investors originally saw bitcoin as a 'safe haven' asset separated from the fluctuation of markets. However, recently, institutional investors have flocked to the asset class, with about 6 per cent of bitcoin being held in exchange-traded funds (ETFs). Why is it rallying? Bitcoin and other cryptocurrencies are notoriously volatile, with their valuation regularly dropping or rising by thousands of dollars in mere minutes. However, the recent rally has been more sustained, thanks largely to the influence of Trump. During his campaign, Trump made no secret of his support for cryptocurrencies, promising to make the US the 'crypto capital of the world'. Once elected, he then enacted several policies to promote crypto, including establishing a strategic bitcoin reserve within US Treasury, and holding a crypto summit at the White House. Loading He also released his own Trump-branded cryptocurrency, which has a market capitalisation of $US1.9 billion. Republicans are now attempting to pass three more crypto-friendly bills – The GENIUS Act, The Clarity Act and The Anti-CBDC Surveillance State Act – all of which will create a friendlier regulatory environment for crypto traders and companies, including clarifying when digital assets like crypto tokens are considered securities or commodities. Crypto advocates view these bills as the US government's effective endorsement of the sector and a further legitimisation of bitcoin, despite widespread crime in the industry and real-world use cases for cryptocurrencies still few and far between. How much has the price risen? After bitcoin's creation in 2008, you could buy one for just a few cents, with 10,000 bitcoin famously being used to buy two pizzas in early 2010. As of Wednesday afternoon, one bitcoin was worth about $185,000. Since Trump's election, the asset's price has risen by almost $80,000, or 76 per cent. Should you invest? Obviously, the best time to have bought bitcoin was 2009 – and even then, you would have needed to conveniently forget about it until now. But is it still worth buying even with its heady valuation? 'Yes, we think so,' says Justin Lin, investment strategist at ETF provider Global X. '2025 is shaping up to be a landmark year for bitcoin adoption. This year we've seen some serious signs that investors are starting to value the asset for its fundamental strengths rather simply speculating on its price. Loading 'We think bitcoin is on its way to becoming a portfolio staple across the world, and as adoption grows, price discovery will follow.' Global X believes bitcoin will reach a valuation of $US200,000 by midway through next year. Much of this, Lin says, will be driven by traditional investors through bitcoin ETFs, with the current crop of crypto investors mainly consisting of younger, tech-savvy investors. 'By our calculations, only about 20,000 Australians have invested in ASX-listed bitcoin ETFs. That's shockingly low compared to the US. We take it as a sign that our older investment community still has a lot of catching up to do,' he says. How can you invest? There are a number of online bitcoin exchanges that operate both internationally and in Australia. You can sign up to one and buy bitcoin or other crypto. Keep in mind you don't have to purchase a whole one – you can just buy a fraction of a coin. These exchanges allow you to buy, sell, and store your bitcoin, much like an online stockbroker such as CommSec. The bitcoin ETFs are becoming increasingly popular as a way for traditional investors to purchase the digital asset without having to make an exchange account, with the ETFs available to purchase the same way as any other ASX stock. However, chief executive of investment firm VanEck Asia Pacific Arian Neiron said Australian investors seem to be less willing to invest in crypto than their US counterparts. '[Australian] investors are more cautious about bitcoin exposure, particularly when there is price momentum based on sentiment,' he says.
Yahoo
27-06-2025
- Business
- Yahoo
IPO Market: Why 2025 is Poised for a Resurgence After Years of Stagnation
After reaching a peak in 2021, the initial public offering (IPO) market has been stagnant. In 2020, the number of IPOs was 480, and in 2021, the number of new offerings exploded to 1035. The reason behind the explosion in new stock offerings was due to an 'animal spirit' market environment spurred on by basement-level interest rates, government stimulus checks, and robust market performance. Meanwhile, many companies went public in the second half of 2020 and early 2021, having delayed their IPOs due to macroeconomic concerns caused by the pandemic. In addition, the stay-at-home trend led to the rapid growth of digital and online businesses like telehealth, cybersecurity, e-commerce, and streaming services, prompting management teams to take them public. The rise of SPACs (Special Purpose Acquisition Companies), also known as 'blank check companies,' helped to increase the IPO count and Wall Street's speculative, risk-on fervor. SPACs utilize the IPO process as a means to raise capital for the acquisition of a private company. During the immediate post-COVID timeframe, the number of SPACs doubled, and their share prices increased rapidly (at first) as well. However, with little fundamentals, sky-high valuations, and speculative retail investments, the IPO SPAC bubble eventually burst. The poor performance after the initial SPAC jolt likely set the IPO market back for years. With higher inflation in 2022 came higher interest rates and a more challenging path to going public. In addition, macro concerns and a tighter regulatory environment meant that more companies remained private. From the peak of 1,035 IPOs in 2021, the number of IPOs in 2021 was 181, 154 in 2023, and 225 last year. Year-to-date, there have been 161 IPOs in the United States. Should the current trend continue, 2025 will mark the most robust IPO market since 2021. What's behind the rebirth of the IPO market? · Innovations Lead to Hyper-Growth Industries: Industries such as artificial intelligence and digital assets have transitioned from pipedream to reality in 2025, amid rampant adoption and investment. · Regulatory Thawing: The Trump administration is seen by Wall Street as more favorable from a regulatory perspective. For example, the administration is backing 'The GENIUS Act,' finally providing a regulatory framework and clarity for the stablecoin business. · The IPO Domino Effect: Often,management teams will wait to see how other companies do before going public. Because companies like Coreweave (CRWV) and Circle Group (CRCL) have experienced so much price appreciation since going public, other companies are more likely to follow suit and pull the trigger. Image Source: Zacks Investment Research Though many 2025 IPOs have been successful, not all have been. For instance, Newsmax (NMAX), a right-leaning media company, shot from $15 to $265 before completely roundtripping the gains. IPOs are the lifeblood of the stock market, and when the market is healthy, they can provide investors with investment opportunities in hyper-growth market areas such as fintech, digital assets and artificial intelligence. Two stocks to watch in the digital assets and fintech space are Cantor Equity Partners (CEP) and Chime Financial (CHYM). CEP is a SPAC used to acquire Bitcoin, and Chime provides a mobile-first banking solution. In addition, financial infrastructure platform Stripe is rumored to be considering an IPO in 2025. Here are some other potential IPOs rumored to be going public this year: Klarna: A leader in the 'buy now, pay later' space. Discord: A popular chat and communication platform. StubHub: The leading ticket resale marketplace. Bottom Line After a multi-year drought, the US IPO market is reborn in 2025. More companies are going public and performing well, offering fruitful opportunities for growth-oriented investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CoreWeave Inc. (CRWV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
