Coinbase direct listing could revalue the whole crypto space, blockchain ETF creator says

Coinbase direct listing could revalue the whole crypto space, blockchain ETF creator says

The next chapter in the crypto craze is set to be a pivotal one.

Cryptocurrency exchange Coinbase is set to make its public market debut Wednesday at a valuation of between $50 billion and $100 billion, larger than major stock exchanges such as Nasdaq and Intercontinental Exchange, the parent company of the New York Stock Exchange.

The move could force investors and institutions alike to take a closer look at the entire digital asset space, Amplify ETFs founder and CEO Christian Magoon told CNBC's "ETF Edge" on Monday.

"There could be a revaluation for this whole segment higher when you see some of the numbers that come from Coinbase," said Magoon, whose blockchain-focused Amplify Transformational Data Sharing ETF (BLOK) will likely add Coinbase to its holdings after the debut.

Coinbase's revenues for the first quarter of 2021 were 1.5 times its revenues for all of 2020. It is the largest cryptocurrency exchange in the United States and will be the first of its kind to enter the public arena.

"I think we're going to see more private companies go public because they see the path, hopefully, that Coinbase takes that recognizes the value in the public marketplace," Magoon said.

Additionally, at least four exchange-traded fund issuers