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U.S. investment bank William Blair sees Coinbase and Circle as beneficiaries of the crypto market recovery, driven by regulatory formalization, increased tokenized-asset activity, and business diversification, The Block reported.
William Blair said the U.S. SEC rolled out a series of rules, including for stock token trading, after the CLARITY Act failed to pass in the U.S. Senate, and expects the changes to improve investor sentiment and have a positive effect on Coinbase through next year. The bank added Coinbase has diversified its offerings this year by adding institutional and retail derivatives and prediction markets, and said concerns about the exchange’s competitiveness are overstated.
On Circle, William Blair said Bitcoin is acting as the main driver of the company’s near-term value gains. CRCL shares have risen 52% since July 1, when Bitcoin hit a low, and USDC’s market capitalization is also expected to follow Bitcoin’s uptrend, although with a possible lag. The bank added rival stablecoins do not appear to pose a major threat to USDC’s position, and said Circle’s long-term value lies in building a global stablecoin payments and trading network rather than relying on reserve income.