WonderFi To Become The First Regulated Crypto Exchange In Canada To List On The TSX

WonderFi listing comes at a time when market watchers say the sector is approaching a “crypto winter”

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Vancouver-based WonderFi Technologies Inc. will soon become the first regulated cryptocurrency marketplace in Canada and the first registered trading platform to list its shares on the Toronto Stock Exchange.

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WonderFi, which owns Bitbuy Technologies Inc. and is backed by Shark Tank star Kevin O’Leary, will be listed with the TSX:WNDR ticker on June 22. .

“Most banks are under tremendous pressure from their own constituents who have accounts with them to give them exposure (to cryptocurrency),” he said. “So we’re making sure that we keep our platform open, ready for companies to engage with any banking platform that wants to work with us, and I think being part of the TSX, where you’ll find many other financial services listed , is a very important thing.

In early May, the TSX approached WonderFi to see if the company would list on the exchange. O’Leary said the TSX listens to its constituents and noted the growing institutional demand for cryptocurrency assets.

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By listing on the TSX, WonderFi hopes to attract a “new breed of retail and institutional investors,” chief executive Ben Samaroo said in a press release, adding that this breed tends to be older investors who confidence in the TSX.

Data from Bitbuy noted that cryptocurrency investors are aging. In 2022, the median age of new cryptocurrency investors was 39, five years older than in 2018. Bitbuy added that there has been a three-year increase in the median age over the past few years. last 12 months or so. Assuming the trend continues, the stock market expects the median age to soon be in the mid-40s.

O’Leary also noted that older investors tend to have more capital to put to work.

However, WonderFi’s listing comes at a time when market watchers say the sector is approaching a “crypto winter,” or a sustained decline in asset values.

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On Tuesday, Coinbase Global Inc. Chief Executive Brian Armstrong warned of a cryptocurrency winter after the company cut 18% of its staff. Its shares have fallen 80% this year, according to data from Bloomberg. New York-based stock exchange Gemini Trust Co. and US crypto lender BlockFi Inc. have also reduced the number of their employees.

The rout in the cryptocurrency market doesn’t faze O’Leary, who said even success stories such as Amazon.com Inc. saw a deep drop in stock prices as they found their footing in the early days. .

“I feel the same about the crypto sector,” he said. “It’s nascent, it’s early. There are a lot of unregulated positions on leveraged positions, and that too will eventually pass. They will explode.

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O’Leary added that greater regulation will attract institutional capital, which will bring price stability and appreciation once assets are held by larger players.

“But it all starts with a regulatory environment,” he said.

Another favorable factor pointed out by O’Leary is the large number of engineers graduating from top American universities who are looking to work or start businesses in the blockchain sector.

“The amount of intellectual capital entering this market is so enormous that the sector will undoubtedly become the 12th sector of the economy considering all the productivity it will provide to the largest sector, namely financial services”, did he declare.

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“Politics is one of the reasons you want to see this thing mature, and part of the maturation is a TSX listing, which is obviously a move towards an institutional investor, a move towards supporting the banking sector , a move towards a larger base of shareholders and, ultimately, account holders.

Prior to listing on the TSX, WonderFi had been on a wave of acquisitions, snapping up Bitbuy for $206 million in January and Toronto-based cryptocurrency trading platform Coinberry Ltd. for $38.5 million in April.

O’Leary hinted that WonderFi would look to other global jurisdictions as part of the company’s expansion strategy, though he didn’t specify which specific countries caught his eye.

WonderFi has previously been listed on the Neo Exchange and has OTC market listings in the United States

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WonderFi To Become The First Regulated Crypto Exchange In Canada To List On The TSX


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