Analysts Upgrade Gemini Following the Conclusion of IPO Restrictions

Welcome to the US Crypto News Morning Briefing—your vital summary of today’s key developments in the crypto space.

Prepare your coffee; the markets are shifting in intriguing ways once again. With Wall Street’s new investments in crypto stocks, analysts showing interest in recent listings, and rumors of Bitcoin being integrated into central bank reserves, something significant could be brewing beneath the surface of traditional finance.

Crypto News of the Day: Gemini Gains Wall Street Trust as Analysts Predict 25% Upside

The cryptocurrency exchange Gemini is gaining traction on Wall Street after a successful Nasdaq listing.

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A recent article from US Crypto News revealed specifics about the public listing. Just a month later, 11 major financial institutions are reportedly beginning to cover its stock, trading under the ticker GEMI.

Matthew Sigel, Head of Digital Assets Research at VanEck, noted that the coverage includes six “buy” and five “hold” recommendations, with price targets ranging from $25 to $42.

The consensus suggests roughly a 25% upside from current trading levels, showcasing rare confidence amidst a turbulent crypto equity market. However, not every firm shares this sentiment.

“While we recognize Gemini’s growth potential is strong relative to its peers, we expect the company to remain largely unprofitable during the forecast period. Therefore, we believe a discount compared to peers is necessary due to heightened execution and market risks,” Sigel stated, referencing the bearish outlook from Keefe, Bruyette & Woods (KBW).

Nevertheless, Gemini’s growth trajectory, with over 523,000 monthly active users across 60 countries and $18 billion in assets, sets it apart in an increasingly competitive market.

Gemini’s IPO raised $425 million, achieving a valuation of $3.3 billion, marking a significant moment for the crypto industry’s re-entry into public markets. This event followed a credit agreement with Ripple to enhance liquidity, indicating growing synergy between crypto-native companies and established financial institutions.

Since its debut, Gemini has garnered substantial institutional interest due to its growth metrics and efforts to revive crypto IPOs after years of regulatory hesitance.

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Following the path of Coinbase’s 2021 IPO, whose investors finally saw profits in July for the first time in four years, as highlighted in a recent US Crypto News article.

However, unlike Coinbase, the Winklevoss twins-led exchange offers a more diversified model that includes custody, derivatives, and compliance-driven services.

While Gemini’s stock outlook remains cautiously optimistic, according to Sigel, peers like Coinbase (COIN), Robinhood (HOOD), and BlackRock’s iShares Bitcoin Trust (BLSH) currently have average price targets below their market prices.

Sigel believes that Gemini may be better positioned for short-term gains.

Macro Trends: Bitcoin’s Institutional Prospects and New Index Debuts

Gemini’s launch aligns with a rise in institutional confidence throughout the crypto sector. A recent US Crypto News feature noted Deutsche Bank economists’ predictions that Bitcoin might be included in central bank balance sheets by 2030.

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This transition would align Bitcoin with gold as a global reserve asset. The bank pointed to increasing legitimacy, improved liquidity, and diminishing volatility, suggesting that adoption driven by the US could help Bitcoin overcome its “speculative” reputation.

Meanwhile, S&P Global has introduced the Digital Markets 50 Index, tracking 15 cryptocurrencies and 35 crypto-related equities, reflecting how traditional financial metrics increasingly acknowledge crypto as a mainstream asset class.

As a result, today’s US Crypto News highlights three key narratives:

• Gemini is receiving a cautious endorsement from analysts,
• Bitcoin is positioning itself for central bank acknowledgment, and
• Wall Street is re-engaging.

These stories indicate that crypto’s next growth phase may be as much about public markets as it is about the blockchain itself.

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Chart of the Day

Eleven Wall Street firms, including Morgan Stanley, Goldman Sachs, and Citi, have begun coverage following the IPO, with a distribution of 6 Buy ratings, 5 Holds, and price targets between $25 and $42.

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Here’s a brief overview of more US crypto news to watch today:

Crypto Equities Pre-Market Overview