Hold Rating on Bullish Amid Valuation Concerns and Regulatory Hurdles

Ed Engel, an analyst from Compass Point, has initiated a new Hold rating on Bullish (BLSH).

Ed Engel has given his Hold rating due to a combination of factors that reflect both opportunities and challenges for Bullish. The company, which is an international crypto exchange, has the potential to capture market share in the U.S., particularly among institutional traders where Coinbase currently dominates. However, the current valuation of Bullish appears to be high, with shares trading significantly above its IPO price and at a high multiple of EBITDA, making it difficult to justify a more positive rating at this time.
Another factor influencing the Hold rating is the regulatory environment in the U.S. Bullish’s entry into the U.S. market is contingent on the passage of crypto market structure legislation, which is not expected until next year. Additionally, while Bullish’s hybrid AMM provides liquidity advantages, it also introduces inefficiencies that could impact its market position. These uncertainties, combined with the regulatory hurdles, suggest that there might be a better buying opportunity in the near future if the company’s valuation becomes more reasonable.