Investment company Bullish, supported by Peter Thiel, raises its IPO target and aims for a valuation of $4.8 billion.
The crypto market has surpassed the $4 trillion mark, sparking a wave of Initial Public Offerings (IPOs) and making waves in unexpected areas. One such example is Jeff Bezos' company, Blue Origin, which now accepts cryptocurrency payments. This move underscores how crypto-native firms are redefining traditional capital management strategies.
In a significant development, President Trump's executive order has opened the door for plan sponsors and fiduciaries to include cryptocurrency, private equity, and real estate as investment options in 401(k) plans. This move aims to reduce regulatory and legal barriers, paving the way for a more diverse range of investment choices for retirees.
The order expresses a policy that every American preparing for retirement should have access to alternative asset investments when a fiduciary determines they provide an appropriate risk-adjusted return opportunity. It rescinds a 2022 Biden-era DOL guidance that urged caution before allowing cryptocurrencies in 401(k) plans due to concerns of fraud, volatility, and theft. Instead, the DOL now applies a “facts and circumstances” standard, meaning fiduciaries must prudently assess crypto and alternatives without blanket prohibitions.
This shift could potentially create fiduciary “safe harbors,” reducing fear of litigation that historically impeded alternative assets’ inclusion in 401(k) plans. The order expands retirement savers’ investment choices beyond traditional stocks and bonds, offering the potential for higher returns and diversification benefits. However, experts caution about unique risks like liquidity and transparency issues.
Meanwhile, the IPO market is also seeing a surge, with the recent surge in IPOs following a string of regulatory wins under the Trump administration. Stablecoin issuer Circle, which went public in June, has seen its shares surge 93%. The exchange is coordinating with one or more stablecoin issuers, adding another layer to the growing trend of public companies using crypto treasuries.
Bullish, a digital asset exchange, despite its $4.8 billion target, fell short of its $9 billion valuation attempt during the 2021 SPAC frenzy. However, Bullish plans to convert a "significant portion" of its $990 million proceeds into dollar-pegged stablecoins, mirroring the growing trend of public companies using crypto treasuries.
In conclusion, the crypto market's growth and regulatory changes are transforming the investment landscape. From retirement plans to IPOs, cryptocurrency is gaining traction and is poised to play a significant role in the future of finance.
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