In a move that would significantly bolster the position of bitcoin and cryptocurrency exchanges, as major corporations, Kraken, a prominent US-based exchange, is reportedly considering going public through a direct listing next year, CNBC said.
The report cited “record trading volumes and new customers amid a surge in bitcoin’s price” as motivation for the potential listing by Kraken, and it is likely that the success of Coinbase’s direct listing will motivate this as well.
With a user base of more than six million, Kraken is one of the largest cryptocurrency exchanges in the world. According to available data from CoinMarketCap, it is currently ranked fourth on the list of the largest exchanges by trading volume.
In a recent interview with CNBC, the company’s CEO and founder, Jesse Powell, revealed that it has been able to capitalize on the recent rise in bitcoin price. According to Powell, the profits the firm posted in February had exceeded the profits of the previous year.
Bitcoin hit a record price of more than $ 60,000 in mid-March. Analysts and traders have attributed the price increase to the entry of institutional investors into the sector. During this time, institutions such as Tesla, MicroStrategy and a host of others have made huge investments in BTC.
Recently, Kraken’s main rival in the US, Coinbase, revealed that it will go public in a blockbuster direct listing scheduled for next week. This listing could help drive the company’s value up to $ 100 billion. Coinbase also recently announced record sales of $ 1.8 billion in the first quarter of 2021.