Analysts Skeptical of Bullish’s Valuation Amid Regulatory Hurdles

Bullish, the Peter Thiel-backed cryptocurrency exchange, made a high-profile debut on the New York Stock Exchange in August, with its stock price surging to more than three times its initial offering price. However, analysts at Compass Point have initiated coverage with a neutral rating and a $45 price target, suggesting the stock is currently overvalued by approximately 16%.

The investment bank's report highlights significant regulatory challenges, particularly in the U.S. market. Analysts Ed Engel and Abdullah Dilawar pointed to the lack of progress on the CLARITY Act, which would clarify the roles of the SEC and CFTC in crypto regulation. They also expressed skepticism about Bullish's ability to secure a BitLicense from the New York Department of Financial Services, citing the agency's historical reluctance to embrace novel blockchain technologies.

"The U.S. market remains a formidable barrier," the analysts wrote. "Without clear regulatory frameworks, NYDFS effectively serves as the gatekeeper—and its track record suggests a tough road ahead for Bullish." The exchange's transparency around its automated market Maker system may not be enough to overcome these hurdles.