Coinbase shares are up another 8% in premarket trading Thursday.
Why it matters: The company’s direct listing was billed as the crypto event of the year — and the groundswell of investor interest is hugely validating for both the crypto economy and the companies that have cropped up to support it.
But the Coinbase listing was a seminal event that tested the appetite of a broad range of investors. And clearly, there’s hunger for exposure.
“The Coinbase debut is a really important event in the maturation of the crypto industry. It has built a strong business and the market is believing that,” Steve Ehrlich, CEO of Voyager Digital, a crypto asset broker, told my CNN Business colleague Paul R. La Monica. “This is just the beginning.”
The debut has made a lot of people very rich. At Wednesday’s closing price, Coinbase CEO Brian Armstrong’s 39.6 million shares are worth just under $13 billion.
What’s next: Markets are already buzzing about the debut of additional crypto stocks like Coinbase rival Kraken. But the nascent industry also faces a lot of uncertainty, with fierce competition and the looming threat of fresh regulation.
Top US banks just notched a blockbuster quarter
An improving economy, a full pipeline of deals and choppy markets? That’s the perfect recipe for big banks, which are posting eye-popping results for the first three months of the year.
CEO Jamie Dimon pointed to the “rapidly improving economy” as a major contributor. Defaults on loans are becoming less of a concern, while Americans are taking advantage of low interest rates as they race to secure mortgages for new homes.
Investment bankers have also been incredibly busy thanks to a flood of mergers and stock and bond sales, lining up a record quarter for fees.
Wall Street traders also thrived in a frenzied environment. (Remember GameStop mania? Yes, that was last quarter.) Goldman Sachs’ trading revenue rose 47% to $7.6 billion during the first three months of the year, its highest level since 2010.
Investor insight: Goldman’s shares jumped more than 2% after it reported results, while JPMorgan Chase’s stock dropped almost 2%. So far this year, shares are up 27% and 19%, respectively.