The euphoria of the much-awaited listing of crypto exchange Coinbase did not seem to last long. After listing at a premium at $381 per share on Nasdaq, the stock fell nearly 20 percent from its opening level to around $328.
Ahead of its listing, the reference price set by Nasdaq was $250 per share, which served as a benchmark and not the actual buy price for investors.
Its valuation also soared above a $112 billion valuation in its trading debut but later slipped back below its opening price
Coinbase is the first company devoted entirely to cryptocurrency to enter the US stock exchange. The listing, however, happened through the Direct Listing route instead of the conventional IPO route.
In Direct Floor listings, companies are allowed to list their shares directly and begin trading publicly on the exchange.
So how can an Indian investor buy Coinbase shares?
Indian investors looking to buy Coinbase shares can open an international trading account with any foreign brokerage firm to start investing. Opening a foreign trading account is possible after completing KYC and other bank formalities.
Other than this, investors can use the government's remittance scheme (LRS) in which domestic investors are allowed to remit $250,000 in a year to other countries. These funds amount can be used for specific current account or capital account transactions, which include making equity and debt investment abroad.
However, such investments can be made only if your broker has a tie-up with a broker in the other country and the process can be fairly tedious.
Besides, fund houses like Edelweiss, Invesco Mutual Fund, DSP, Franklin Templeton, among others also offer products that help Indian investors get exposure to global equities.
Further, investors can look for stockbrokers who have a license to invest in both India and other countries like the US, Europe, China and can invest through them as well.
One can also buy indirectly by purchasing international mutual funds. The mutual funds' houses will invest in their preferred stock if they found it promising. Buying an international mutual fund would make it possible for investing in the IPO and later on the company's (the one launching the IPO) shares after the listing.
Founded in 2012 in San Francisco by Brian Armstrong and Fred Ehrsam, the Coinbase app allows users to buy and sell about 50 cryptocurrencies, including the popular bitcoin and ether. The platform now has over 43 million users worldwide and has transacted more than $456 billion to date, according to the company’s latest filing with the SEC.
(Edited by : Abhishek Jha)