Coinbase IPO: Which brokers are selling Coinbase shares in Australia?
Coinbase is set to list in the United States overnight on Wednesday as Bitcoin brushes another record high.
As if crypto isn't already hot enough, Coinbase, the biggest digital currency exchange in the US, is rearing to make its stock market debut this week.
Coinbase Global Inc. is set to list on the NASDAQ on 14 April under the ticker symbol COIN. By listing on the stock exchange, it opens the door for regular investors to buy Coinbase stock. If all goes to plan, it will be available for Australians to purchase from very early Thursday morning (after the market opens in the United States).
However, to buy in, you'll need to make sure you're signed up to the right online broker. Not all brokers in Australia offer US stocks and not all will be selling Coinbase as soon as it lists. To limit the risk that comes from volatility on IPO day, some brokers choose to offer stock 1-2 days after it goes public.
We've reached out to Australia-based brokers to find out which are offering Coinbase on the day it lists and which will have stock available in the days following. You should be aware that Coinbase is going public via a direct listing, which can come with additional risks.
Brokers offering Coinbase (COIN)
|Provider||Is it offering Coinbase (COIN)?||Details|
|eToro||Yes||eToro has confirmed that COIN stock will be available to trade on its platform from 15 April, one day after the stock's public debut.|
|IG||Yes||IG plans to offer Coinbase once it lists, however, it says that the stock may not be available for another 1-2 days after the IPO date.|
|CMC Markets||Yes||CMC says Coinbase will be available for trading as soon as it lists on 14 April (US timezone).|
|SelfWealth||Yes||A customer help representative confirmed that Coinbase will be available to trade on 14 April.|
|Saxo Capital Markets||Yes||A customer help representative confirmed that Coinbase will be available to trade on 14 April as soon as it lists.|
|Stake says that Coinbase will be available to trade on 14 April as soon as it lists.|
|CommSec International||Yes||A customer help representative confirmed that COIN would be tradable as soon as it lists in the United States, however, only limit orders, not market orders, will be available.|
|Interactive Brokers||Yes||As soon as it's listed on the stock exchange, COIN will be available on Interactive Brokers, according to a customer service representative.|
|Bell Direct||No||Bell Direct does not offer US stock trading.|
|Superhero||No||Superhero does not offer US stock trading.|
|Bendigo Invest Direct||Unsure at this stage||Finder is awaiting confirmation.|
|HSBC Online Share Trading||No||HSBC does not offer US stocks.|
|ANZ Share Trading||No||ANZ Share Investing says: "We currently do not offer international IPOs due to the restrictions placed by our international executional broker."|
|ThinkMarkets||No||ThinkMarkets does not offer US stocks, however, its CFD account will be offering COIN as a stock CFD.|
|Nabtrade||Unsure at this stage||Finder is awaiting confirmation.|
|Goodment||Yes||Goodment said: "We will have Coinbase available for investment within a few days of the IPO completing."|
Should you buy COIN stock on IPO day?
Buying stock on the day of its IPO can be risky because there's usually a lot of hype, which leads to volatility. However, the Coinbase listing is also somewhat unique.
Coinbase is going public through what is called a direct public offering. A direct listing means that no new stock and no investment banks or underwriters are involved in selling the stock to the public, as is typical in a traditional IPO.
Instead, existing private shareholders and employees of Coinbase will sell their stock directly to the market. The benefit is that it costs less for the company and Coinbase does not need to convince institutional investors to buy in ahead of going public.
What are the potential risks?
Because there are no underwriters involved in managing the supply and demand of stocks, there is the potential for higher-than-normal price volatility.
There are also a lot of unknowns with direct listings. Retail investors are left to guess the stock price, how many shares will be made available on the day and the projected market cap – information which is usually made known.
CMC Market analyst Michael McCarthy also pointed out additional risks, with the company's valuation tied to the price of Bitcoin.
"What a [direct listing] means is they don’t have to place anything," McCarthy told Finder. "They don’t have to convince any institutional investors to take it on board. Considering the appetite for tech stocks and crypto, that would have seemed the logical thing to do."
"But they've chosen not to do that at all. And I think, drilling into the numbers, it’s obvious why."
McCarthy says that the pegged $90 billion valuation is based on an exceptionally high revenue last quarter that was tied to the Bitcoin rally.
With Bitcoin recently hitting an all-time high of US$60,415.34 in March, he said it's clear why Coinbase has chosen now to list.
"Everybody loves a bull market, but nobody can tell the future. The music could keep playing for years. Or it could stop tomorrow."
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