NEW YORK, NEW YORK – AUGUST 13: The company logo of cryptocurrency exchange Bullish is displayed on a banner at the New York Stock Exchange during morning trading on August 13, 2025 in New York City. Tom Farley, CEO of Bullish, rang the opening bell at the stock exchange to celebrate the company’s Initial Public Offering. The cryptocurrency exchange priced its IPO at $37 per share, above the expected range of $32 to $33, giving it a total market value of $5.4 billion. (Photo by Michael M. Santiago/Getty Images)
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Bullish (NYSE:BLSH) stock experienced a significant increase following its IPO last Wednesday. Although the listing was set at $37 per share, the stock surged to $118 during early trading before stabilizing around $63 after another sharp sell-off on Monday. The firm operates a cryptocurrency exchange designed for institutional investors, blending decentralized finance protocols with the security features of a centralized platform. Additionally, it owns Coin Desk, a prominent crypto news and data provider, which affords it media influence and the capacity to combine market intelligence with trading services. This advantage caters specifically to institutional investors. Bullish emphasizes compliance with regulations, licensing, and governance structures given its client base of institutional customers. So, is Bullish stock a worthwhile investment after the recent sell-off?
Strong Growth
Despite the company’s distinct positioning, the stock still trades at around 95 times the revenues projected for 2024 following the recent sell-off, which isn’t a low multiple even for a swiftly growing enterprise. Bullish’s revenues soared to $97 million in 2024, up from $39 million in 2023, reflecting an over 140% year-on-year increase, with trading volumes reaching $250 billion in 2024 compared to $72.7 billion in 2022. Trading volumes in Q1 2025 saw another rise of 78%, and management anticipates profitability in Q2 with net income exceeding $100 million. Since its launch, the platform has registered more than $1.25 trillion in total trading volume and manages $2 billion in cryptocurrency assets, predominantly Bitcoin, with smaller portions allocated to Ethereum and stablecoins.
The cryptocurrency markets remain volatile, with price fluctuations in Bitcoin and Ethereum significantly affecting performance. However, unlike exchanges focused on retail, Bullish caters to institutional investors, emphasizing Bitcoin and Ethereum trading. The interest from long-term investors with significant capital could render the company less susceptible to volatility compared to other brokers. Separately, will interface design software Figma stock decline to $40?
A Smart Play On Institutional Crypto
The investment rationale for Bullish stock is based on the long-term growth potential from institutional adoption of cryptocurrency. Unlike previous cryptocurrency cycles, which were predominantly influenced by retail traders, institutional interest is now growing due to increased regulatory clarity, the introduction of Bitcoin and Ethereum ETFs, and reinforced custody and compliance frameworks. The Trump administration’s supportive attitude toward cryptocurrency and the enactment of favorable legislation could further amplify interest. Major financial managers, pension funds, endowments, and hedge funds are progressively incorporating digital assets into their investment strategies, which enhances liquidity and extends investment time horizons.
For investors, this transition may warrant a higher valuation for Bullish, which is among the limited platforms specifically designed for these institutional clients. Nevertheless, there are also risks involved. Competition may intensify from entities such as Coinbase and Gemini. On the stock front, insider lock-ups set to expire in February 2026 could increase the supply of shares and exert downward pressure on prices.
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While BLSH stock shows promise, investing in individual stocks carries risks. Conversely, the Trefis High Quality (HQ) Portfolio, which comprises 30 stocks, has consistently outperformed the S&P 500 over the past four years. Why is that? As a collective, HQ Portfolio stocks have delivered superior returns with lower risk compared to the benchmark index; they have provided a smoother investment experience, as demonstrated in HQ Portfolio performance metrics.