Crypto Currents: Grayscale files for IPO

Crypto asset manager Grayscale files for a U.S. IPO. Meanwhile, stablecoin issuer Circle’s shares see a decline following a solid Q3 earnings beat, and Block’s Cash App rolls out new features to integrate bitcoin payments into everyday commerce. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio, Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

GRAYSCALE FILES FOR U.S. IPO: Grayscale Investments has filed an S-1 form with the SEC for a proposed initial public offering of its common stock under the ticker symbol “GRAY”. The crypto asset manager, known for its ETFs, is moving toward the public markets at a time of heightened institutional interest. The filing marks another current in a wave of other crypto-related firms seeking U.S. listings, including the successful IPOs of stablecoin issuer Circle (CRCL) and centralized exchange Bullish (BLSH).

CIRCLE SHARES DIP DESPITE SOLID Q3 BEAT: Circle reported strong Q3 results, with $166M in adjusted EBITDA and $740M in revenue, beating the Street estimates on both metrics. Despite the beat, the stock closed down 12.2% on Wednesday. Analysts at Bernstein defended the stock, maintaining an outperform rating and a $230 price target, dismissing fears over interest rate cuts and competition from competitors like Stripe and PayPal (PYPL). Demonstrating its own conviction, Cathie Wood’s Ark Invest purchased $30.5M worth of Circle shares during the dip, CoinDesk noted.

The company also announced the launch of Circle StableFX, an institutional-grade engine for onchain foreign exchange, and a “Circle Partner Stablecoins” program. These initiatives will be built on Arc, Circle’s upcoming open Layer-1 blockchain.

BLOCK EXPANDS CASH APP TO INCLUDE STABLECOINS, USD-TO-BITCOIN PAYMENTS: Block (XYZ) is significantly expanding the crypto utility of its Cash App platform. New features will soon allow eligible customers to spend bitcoin (BTC-USD) directly at local businesses, including merchants using Block’s Square platform. The app will also allow users to convert their USD balance into bitcoin payments over the Lightning Network. Furthermore, Cash App will introduce support for sending and receiving stablecoins for the first time, aiming to make digital dollar transfers faster and more seamless.

BNY MELLON LAUNCHES GENIUS ACT-COMPLIANT STABLECOIN RESERVE FUND: BNY Mellon (BK) is launching a new money-market fund specifically for stablecoin issuers, Bloomberg reports. The BNY Dreyfus Stablecoin Reserves Fund is designed to help providers comply with the new GENIUS Act by holding only securities with maturities of 93 days or less. Digital-asset custodian Anchorage Digital is making an initial investment in the fund. BNY Mellon, which already custodies reserves for Circle and Ripple, has also been working with BlackRock (BLK) and Goldman Sachs (GS) on other blockchain projects.

BITFUFU Q3 REVENUE DOUBLES; MIZUHO CALLS GEMINI A ‘HIDDEN GEM’: Cloud-mining company BitFuFu (FUFU) saw its Q3 revenue double to $180.7M vs. last year. The company stated the growth was driven by strong demand for its cloud-mining solutions as bitcoin prices have trended upward.

Meanwhile, shares of crypto exchange Gemini (GEMI) remain a “hidden gem,” according to analysts at Mizuho.. Despite the stock falling a massive 57% since its September IPO, Mizuho reiterated its outperform rating and $30 price target, citing growth potential from its plans to launch prediction markets and a card for small businesses.

PRICE ACTION: As of time of writing, bitcoin was trading at $101,257.28, while ether (ETH-USD) was trading at $3,392.30, according to price data from CoinDesk.