TL;DR Breakdown
- Bakkt finally debut on NYSE.
- Fims stock plunges 6 percent first day.
- Concerns raised over enthusiasm of crypto firm days before NYSE launch.
After report that top American crypto firm, Bakkt would become a public firm, the crypto platform finally got listed on the New York Stock Exchange (NYSE). However, it ended its first 24 hours with a 6 percent decline.
Following its launch on NYSCE at $9.45 on Monday morning, BKKT rallied by about 3 percent up to $9.77 only 30 minutes after its debut. However, afterward, traders began taking their profit, causing the decline in the stock price.
According to Bloomberg, BKKT was trading at $8.76 by the day’s close after having shed almost -7% from its opening.
Since the beginning of the year, the crypto firm has been on the sidelines of getting listed on the stock exchange through a merger with VPC Impact Acquisitions Holdings. However, it announced on Friday that it completed its merger with VPC Impact Acquisition Holdings on Friday and will go all out on Monday.
Speaking to Bloomberg on their listing on NYSE, Gavin Michael, Bakkt CEO, stated that the ETF approvals are “an important milestone,” adding that there will be “more opportunity for our platform and our business, we’re just getting going with all of this.”
Concerns around Bakkt plans
Bakkt launched in 2018 as a cryptocurrency custodian. It has pivoted since then to launch institutional-facing Bitcoin futures contracts and a retail crypto-asset payments app.
In the firm’s presentation earlier this year, the crypto firm said it expects its “total serviceable addressable market” to grow to an estimated $5.1 trillion by 2025, with around $3 trillion of that coming from cryptocurrency.
However, analysts have flagged the lack of enthusiasm for Bakkt in the days running up to the launch on NYSE. VPC Impact Acquisition Holdings shareholders were given the option to stay invested and own Bakkt stock or get a refund which around 41 percent of them chose.
Bakkt bearish day one on NYSE is not new as Coinbase, another American crypto firm that went public, also had a red day one on NASDAQ, shedding -13.8 percent from its value.
