The Spectacular Launch of US Coinbase Sparks Stir in Domestic Related Stocks

Coinbase Successfully Settles on NASDAQ... Upbit, with Triple the Trading Volume, Also Plans US Listing
Expectations Rise for Domestic Exchange-Related Stocks... Profit-Taking Sales Emerged but Rebound Possible

[Image source=AP Yonhap News]

[Asia Economy Reporter Minwoo Lee] Despite concerns of overvaluation, the US virtual currency exchange Coinbase successfully settled in the Nasdaq market. Expectations are also rising for Upbit, a domestic virtual currency exchange planning to list on the US stock market, leading to movements in related stocks.

On the 14th (local time), Coinbase closed its first trade on the Nasdaq market at $328.28. It started trading at $381, significantly surpassing the $343 opening price forecasted by US economic media CNBC, and surged to as high as $429.54 early in the session. The market capitalization based on the closing price reached $85.7 billion (approximately 96 trillion KRW), nearing 100 trillion KRW. This ranks it as the 4th largest market cap on Nasdaq. During the session, the market cap swelled to $112 billion, rivaling major financial firms such as Citigroup ($152.1 billion), Goldman Sachs ($114.1 billion), and HSBC ($120.8 billion).

Amid such expectations, domestic virtual currency exchange-related stocks are likely to gain momentum again. The main revenue source for virtual currency exchanges is transaction fees, and the trading volume of domestic exchanges is not behind Coinbase. According to CoinMarketCap, which tracks global virtual currency market conditions, Upbit's trading volume (24-hour basis) on the 15th was $15.5 billion, ranking 4th worldwide. Bithumb ranked 32nd with $3.6 billion, while Coinbase recorded $5.2 billion, ranking 24th.

Already, stocks of companies holding shares in Upbit and Bithumb surged significantly the previous day. Wooree Tech Investment closed at 12,450 KRW, up 7.79%. Atinum Investment also ended trading at 6,420 KRW, up 7.72%. These two companies hold 8% and 7.1% stakes respectively in Dunamu, the operator of Upbit. Vidente, which holds a 10.3% stake in Bithumb Korea, the operator of Bithumb, and a 34.24% stake in Bithumb Holdings, the holding company of Bithumb Korea, recorded a 10.07% increase to 15,850 KRW. Although profit-taking selling related to Coinbase’s listing emerged in the morning session causing a decline, there are prospects that the momentum could reignite once Upbit’s listing gains full momentum.

Ha Dae-hoon, a researcher at SK Securities, explained, "The proportion of institutional investors in Coinbase rose from 20% in 2018 to 64% currently, showing growing interest. Coinbase’s listing is a major milestone for the virtual currency market and will serve as an important barometer for listings of major global exchanges such as Upbit."

This content was produced with the assistance of AI translation services.