Bitcoin-exposed companies climb in lockstep with crypto’s rally ahead of Coinbase’s listing

Bitcoin-exposed companies climb in lockstep with crypto’s rally ahead of Coinbase’s listing

Companies with bitcoin exposure jumped on Wednesday in lockstep with the broader cryptocurrency rally ahead of the highly anticipated direct listing of Coinbase.

"The Coinbase IPO is being met with excitement that global crypto market cap will grow by at least 50% later this year," Edward Moya, senior analyst at OANDA, told Insider. "Each legitimate investment vehicle for cryptocurrencies is solidifying the belief that this bubble won't come crashing down to zero."

"All four of these have a direct benefit from bitcoin being up," John Wu, president of Ava Labs, the company beside altcoin Avalanche, told Insider. "Others like PayPal who help facilitate the trading of crypto are up because of sentiment but they don't actually own bitcoin."

Wu said the stocks are now trading lower since investors are "buying the hype, selling the fact". He added that investors may now be allocating ay from these names to the cryptocurrencies themselves.

Coinbase CEO Brian Armstrong on Wednesday during his interview with CNBC made the case as to why the public should invest in his firm rather than straight to the cryptocurrencies.

"We are kind of what you might call an index bet or a levered bet on the crypto space more broadly," he said.

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