Regulatory Fog Clouds Bullish Outlook for Thiel's Crypto Bet

Generated by AI AgentCoin World
Saturday, Sep 6, 2025 12:51 pm ET1min read
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Aime RobotAime Summary

- Peter Thiel-backed Bullish, a crypto exchange listed on NYSE, debuted in August 2023 with a $118 opening price, far exceeding its $37 IPO valuation.

- By mid-September, shares fell to $54 amid concerns over 110x profit valuation and regulatory uncertainty, as U.S. Congress delays the CLARITY Act.

- Analysts highlight New York DFS's cautious stance on crypto licensing, complicating Bullish's path to a BitLicense despite its low-fee institutional model.

- The platform targets European/Hong Kong institutional clients, aiming to compete with Coinbase by leveraging less competitive U.S. trading fee structures.

- Thiel's continued crypto advocacy underscores long-term sector potential, despite short-term volatility and regulatory risks highlighted by Compass Point.

Peter Thiel, the co-founder of

PayPal
and an early investor in Facebook, has continued to show strong support for
Bitcoin
and related digital assets, most recently through his backing of Bullish, a crypto exchange listed on the New York Stock Exchange. The platform debuted in August 2023 with a strong performance, initially surging well above its initial public offering (IPO) price of $37 per share. However, analysts at
Compass
Point have expressed concerns about its valuation and market challenges [1].

Bullish shares opened at a peak of $118, representing a dramatic triple over the IPO price. By mid-September, however, shares had dropped to just over $54, reflecting a 12% decline in a single trading day. The analysts highlighted that the stock was trading at 110 times core operating profit and 68% above the IPO price, raising concerns about its overvaluation [1].

A key challenge for Bullish lies in the regulatory environment. Compass Point analysts noted that the U.S. Congress has yet to pass the CLARITY Act, which would clarify the regulatory roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission. In the absence of federal clarity, the New York Department of Financial Services (NYDFS) has emerged as the de facto regulator for many crypto exchanges in the U.S. The analysts emphasized that NYDFS has historically taken a cautious approach toward blockchain-based innovations, which could delay Bullish’s ability to obtain a BitLicense [1].

Despite these hurdles, the analysts acknowledged the potential for Bullish to compete with larger players like

Coinbase
, especially through its low-fee model and institutional focus. They noted that Coinbase’s institutional trading fees remain higher than those of international exchanges and that the domestic market is less competitive, offering Bullish an opportunity to gain market share if it secures a U.S. license [1].

Bullish currently targets institutional clients in Europe and Hong Kong and has positioned itself as a platform for buying, selling, and trading the future price of digital assets. The platform’s IPO was part of a broader trend of crypto-related companies entering public markets, following high-profile debuts by

Circle
and
eToro
[1].

Thiel’s continued support for crypto innovation aligns with his long-standing advocacy for blockchain technology and digital currencies. While regulatory and market risks remain, his backing of Bullish underscores his belief in the long-term potential of the sector, even as short-term volatility and uncertainty persist.

Source:

[1] Not Very Bullish? Peter Thiel-Backed Crypto Stock Is ... (https://decrypt.co/337962/not-very-bullish-peter-thiel-crypto-stock-ioverpriced-compass)