“Has the capital from the cryptocurrency market been 'diverted' to the US stock market, or is it because these listed companies that the cryptocurrency market is welcoming a true 'trillion-dollar liquidity injection'? This is not a conspiracy theory, this is the market taking real action!”

Only today, the cryptocurrency exchange Bullish, supported by Peter Thiel, successfully went public on the New York Stock Exchange, with an IPO price of $37, skyrocketing to $118 within just a few hours, reaching a market value of $13 billion, with a short-term increase of over 200%.

This is just part of the craze: Circle (the issuer of USDC) raised $1.1 billion in an IPO scheduled for June 2025, and its market value once soared more than twice according to Reuters; Coinbase has already been included in the S&P 500 as of May 2025, marking a significant event for cryptocurrency stocks entering mainstream indices according to Investopedia.

Is the enthusiasm of investors for cryptocurrency stock IPOs draining funds from the cryptocurrency market? In a short time, funds entering these company stocks have gained exposure to 'relatively familiar' targets, avoiding the volatility and compliance risks of directly operating cryptocurrency assets.

However, players like Bullish and Circle are themselves deeply tied to the cryptocurrency market—part of the funds raised from the IPO will be used to build stablecoins (Bullish) or expand the application scenarios of USDC (Circle), which might actually 'inject' funds back into the cryptocurrency market according to Reuters+1Investopedia.

Is liquidity really being injected into the cryptocurrency market?

Research indicates that cryptocurrency exchanges can more effectively utilize their held cryptocurrency assets to optimize their own liquidity management amid market fluctuations, and after the listing of cryptocurrency stocks, they may enhance their market resistance to volatility, rather than simply draining funds according to MDPI.

What does this mean for cryptocurrency investors?

For some investors, cryptocurrency stocks provide an 'entrance' to participate in the cryptocurrency market while avoiding volatility; for another group of long-term bullish investors, this is also a signal that institutional funds are moving towards cryptocurrency, representing an important step in the industry's acceptance and legalization process.

“Do you think today’s cryptocurrency stock listing is ‘draining’ or ‘infusing’? Leave a comment with your opinion, and type ‘inflow’ or ‘outflow’!”