sonali just said it's right around a hundred billion dollars valuation. i was speaking earlier on bloomberg radio with a guest, we spoke about coins chairs but she also founded the digital currency organization. she teaches at m.i.t. as well as oxford. she says she thinks this will have a 150 billion dollars valuation by the end of the week. that's a much larger market cap than even goldman sachs. one of the major wall street banks saying about this listing which has really taken the spotlights from j.p. morgan and goldman sachs. >> there's a chance it could beat goldman sachs and morgan stanley. it's bigger than most european banks and u.s. exchanges. there is exposure to another

crypto exchange. but also made me wonder, why didn't any other exchange try to get exposure to coinbase? goldman, this morning, was asked about crypto and would it create a digital wallet? david solomon said that we are focused on creating a digital bank with no plan frequent wallet now -- for a crypto wallet. but there are ways for banks to get in. they are offering institutional clients is. but it's a years late -- a year's weight. -- wait. >> we have seen the price of bitcoin rise today to another all-time high, at one point it traded at almost six to 5000. right now, it's trading 63,400

$77. we have seen other coins trade higher. ether, for example, is a big winner. it's done even better than bitcoin. on its own, this is a $1.2 trillion. if you look at the major crypto, you get the market cap of well over $2 trillion. we have the e.u. talking about their own digital currency. they talked about a more recently, how is the coinbase to ipo going to push the acceptance of cryptocurrencies into places it's never been before. >> just this morning you had mark cuban tweeting about two lines -- doge coins.

do the trading volume start to change? another company that agreed to go public is known for its exposing -- exposure to the crypto universe. we asked the ceo if people were trading. and that interest among the mainstream community is going to other coins. but to your point, how fast can the central bank get on it, how quickly can it be adopted as a form of payment, rather than a store value? >> one of the lessons to be taken? -- what are the lessons to be taken? what is the experience we have had with the listing? sonali: it gets smoother every time. it opens later than the traditional ipo. the retail interest is

significant. silicon valley likes this a lot better. goldman sachs, j.p. morgan, they are involved. morgan stanley has been involved with most of them in the past. the player that's not as deeply entrenched in this process since it's on nasdaq rather than the stock exchange is said all securities. they are designated market maker for the last major direct listing in this scenario. nasdaq does a lot of price discovery on their own with the banks. >> do direct listings always take this long? typically an ipo would take a half hour or 45 minutes on the long side. i was there for a number of them. we see ipo's drag on. facebook was fairly disasters on the nasdaq but that did not take this long. it was just the size and the style.

sonali: it takes longer to list direct listing on an exchange i say don't wear heels when you go to new york stock exchange. everything i would have happened over weeks is now happening in real time. some has been happening in the last couple of weeks while banks and others try to get a sense of what investors are going to do. but at the end of the day, when you have retail interest that you are watching for. think of what we have seen. they need to be ready. you want to keep prices relatively stable at the end of the day. >> on the new york stock exchange, no running. that's one of the most important rules. no running. our correspondent talking to us about the direct listing. we are waiting for the first live trade. we have been getting indications around 380 or $379.

right around that hundred million dollars valuation. let's take a look at the stock of the hour. >> this is coinbase, forget bank earnings. this is a shed moment for the industry. they are anticipating this listing and everybody wants to know what it's really worth. this is the first time a major cryptocurrency company is listing in this way. the reference listing was $250 per share. this is the listing reference in the shares will not be shaking hands at that price. we have been monitoring those price indications throughout the day. the latest at 300 $80, putting us shy of the $100 million market valuation. this is a way to regulate the industry. it's a mainstream way for

investors to invest into digital currency. but there is a risk, this is closely tied to the performance of bitcoin. bitcoin is sitting at a record high, going past $64,000. and also this crypto market cap at $2 trillion. that's huge. even the most bullish investor will remember that crash back in 2018. >> this is going down but keeps coming back up. i'm seeing indications that we are 10 to 15 minutes away from a life trade on coinbase. at any of these prizes, it's a huge multiple to his last funding. in massive multiple to revenue.

how are investors justifying these valuations? >> sky high valuations. but it is benefiting from bitcoin. $1.8 billion in revenue this -- these past two months, that's more than the whole of last year. you know what they say, not always a lot of reward unless you take the risk. >> thank you. that's really could group to -- that is riddick a group data -- we are watching the stock of the hour. we are going to continue to bring you live coverage of this, the world's largest direct listing in history. right now it could be a $100

billion valuation. this is bloomberg. ♪

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almost every state. now its members of president biden's own parties threatening to stall his agenda. 17 new york democrats in congress say that any economic recovery bills funded by tax increases will also need to fully restore the state and local tax reduction known assault which was removed during the trump. it's valuable for residents in high stack -- high tax states like new york and california. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. >> this is bloomberg markets, i am matt miller. we are awaiting the first trade of coinbase shares on the nasdaq. we are trying to make a market. coinbase is set to open at $382

per share. though that indication has been steadily chronic -- climbing through the last hour. at 10:00 it was at 340 we will continue to watch that. we are getting word that this will trade in about 10 minutes. and of course, we will bring you the first trade live. let's dig into those powell headlines we got from david rubenstein's interview. we are joined by the ceo of hyder capital management. i hope you caught that interview, it was difficult to get a lot out of him on monetary policy, and sequencing. how should we expect this -- expect the fed or let's start with glenn -- let's start with when should we expect the fed to ease off a little? taper, and think about thinking about raising rates. >> it's too early to talk about tapering.

but obviously they are going to taper at some point. i think the market thinks that the fed is going to announce the taper by june. between then we will see some --. we will also see large job gains as various economies reopened. california is reopening their economy on june 15 so you will see a substantial improvement was some headline and inflation numbers. they will start to taper on january. probably they will take a year to do that. they will eventually get to zero. and then they will wait a while to hike rates. matt: we have seen inflation a

little higher than expected. the headlight number at 2.6%. that was not out of the range of what we were waiting for. this is a very low baseline. we have seen food and gas prices , items that the fed considers transitory, rising much faster than the core number. where should we expect inflation to level out? said: if you look at the base effects, we will see inflation push higher. and if you look at yesterday, they come in at a solid .34 for the month. that has nothing to do with base effects. if you are looking at a lot of other surveys, like high-frequency ifn kinds of survey, everywhere you see prices rising.

and you look at high-frequency measures, you also see prices rising quickly. not just in the u.s. but also places like europe. you are seeing a lot of price pressure due to supply constraints. he will also see rebounds in the economic growth fixtures we also have a fiscal policy that could become more expensive. matt: we have seen the m2 chart that john authers used in its column -- in his calling, the supply jumping not only to a record, but doing a hockey stick . i wonder if that's a real concern, or can the economy grow

enough as we reopen? said: in 2009 to 2019, the fed failed targets, that's why the fed has decided that while they are proactive, they are reacting amazingly. and they also feel like they can somehow control this. we are sort of repeating the experience of the 1960's, although to be fair to the fed back then, they did not offer a permanent trade-off between inflation and unemployment. we should probably know better. i think there's a lot of stimulus in the system. we are looking at a presentation recently by a guy the harvard business school.

he is showing high-frequency inflation prices going higher. there's a lot of reasons that the economy will be getting a lot more inflation. and the differences that we are spending this money on fiscal policy. matt: only 5 trillion so far from the federal government, maybe 12 trillion from the dead in emergency moves it since the beginning of the pandemic. so the bloomberg commodity index has shot up. we have seen jumps in everything from aluminum to gasoline and food prices. nonetheless, powell says that's transitory and he told david ruben that unemployment can go alone without triggering inflation. is that the key? you mentioned the phillips curve, it's been problematic for

fed governors. can we really get unemployment down with the commodity jump without triggering really sustained inflation? said: even if it doesn't dropped in radically -- drop dramatically. there is still labor force participation. that doesn't mean you can't get inflation. we had inflation in the 1970's were we had double-digit inflation and unemployment. it's possible to have high unemployment and inflation of the same time. in this case, the economy is supercharged. we are pushing unemployment down, and you are seeing a lot of price pressures. a lot of it has to do with the

fact that we cannot ramp up this quickly. matt: what are you actually buying in that case? hearing this, i feel like i need to stock up on gold, or bitcoin. i'm not sure if there's a lot left in the later. what are you buying to seek shelter? said: when we look at the market, we think first and foremost that you need these positions for higher yields. and i heard chairman powell talking about how this is sustainable. the interest costs go down but eventually the interest rates will create a problem for the u.s. economy with the size of the deficit that we have. you have the markets in the

commodity markets. gold is not necessarily trading well. this is due to the massive accumulation, you could see the base metals going higher and you're seeing the demand for liquid natural gas and crude oils starting to rebound. i think you are going to see general commodity markets. that's the leading indicator from consumer inflation. equity markets will probably want to stick with moving into value or cyclical stocks. matt: we have been seeing that rotation. inc. you so much for your time,

we appreciate your commentary. one thing you may want to buy now, or it seems that many people do, are coinbase shares. the direct listing is still bringing in a market pair let's bring in joe weisenthal for commentary. you have grown up in your financial news career at the same time as bitcoin, cryptocurrencies, and this whole new way of culminating in a 100 billion dollar valuation for coinbase. joe: i remember the first time i heard about this, thinking that i should write a new yorker article. it was trading at bike $.50 per coin and i dismissed it for a long time. i didn't 2010, 2011, 2012, i wish i hadn't.

matt: you created your own cryptocurrency, i feel like you did, didn't you do that on twitter? joe: i did. a friend and i created our own currency. we did the does coin -- doge co in while it briefly traded in india. if we had only stuck with it it would probably worth several billions of dollars. because even joked currency is worth that much. i had numerous opportunities to get really rich in some ways and i have blown it every step of the way. matt: you cannot take advantage of any of these, you cannot load up on coinbase shares. i don't think it would be ethically right to be buying a ton and then covering it. what you think about the future of this company? especially in the massive

valuation? it's hard to believe, but we are hearing -- in about two minutes we will see a live trade. joe: it's extraordinary. a few things are going on. there's so much hype. it's not hard to figure out what people are so excited. we were joking about the chances to get wildly rich. nothing gets people excited about the opportunity to get rich. in a way, this is part of the same story. there have not been easy ways to get really clean access to the crypto world before. there are some equities but nothing on this scale with this reputation. this is the first one. i'm not at all surprised when you see the coins just know last year a 10 fold in march. you see something people getting

rich. this company's printing money right now. right now it's a money printer. i'm not surprised that there is so much excitement. matt: it looks like it's open. it looks like it is open trading at $381 per share. this is then indication you saw with the bottom at 382. that was just an indication. now it's trading opening at $381 per share. this is a live market cap. we are looking for a valuation closer to $100 billion. we will have to do some math at my bloomberg terminal. but it does look like it's trading live. the question is, are we going to see a big pop in the nasdaq debut of what is still the

largest -- let's take this market cap number off the stream. i don't the gets correct. i think the market cap is much higher. let's get the full screen. we are looking at $100 billion, or somewhere there about area this is climbing at $394 per share. this is the live trade here. i wonder if we will get a bigger pump. even if it was indicated, can this go any higher as people get caught up? we have seen huge pumps in most of the big offerings on that side of the atlantic. joe: i will never go on-air on anything and say something cannot go higher. i will never do that again for the rest of my life with any coin, currency.

extraordinary demand. matt: what do you think about the retail side? i have an imessage chat group with my high school buddy, and we talked about beer, full all, trucks. but now it's like going on wall street's bets. guy's i went to school with our shooting tickers back at each other and talking about different alt coins and trying to get on ipo's and following this direct listing. especially with the lockdown and stimulus everyone got, how is that driving this? joe: people ask if we are in a bubble, i don't know what that means. but what i will say for sure is that speculation, brazen gambling, it's in the air right now in a way that we have not seen in a long time. in that sense, it's like 1999.

i'm not saying valuations or anything like that, i think with the vast majority of companies and was listed, but like you say in those group chats. the way everyone talks about what they are trading, what they are investing in that is something we have not seen in a long time. that's new. that doesn't come along that often. usually it doesn't last that long. it's very much part of the culture. matt: it has made it a lot of fun. although some of my friends have dropped out completely because they aren't interested. joe, thank you. i just ran the >> i want to welcome in our bloomberg and be in and

bloomberg audiences that we do this time of a every day. my old friend joins me to go through this direct listing. you've been covering the technology sector as long as i have known you, which is at least a decade. what does this mean to you in terms of the growth you have seen in silicon valley, and you're now seeing with sin tech? >> when you think about the products related -- investing products related to underlying bit going, there has been an explosion. just thinking about the canadian market, all of these bitcoin that have launched in canada, you have these worlds that are colliding when you had the underlying apps, and in this check -- in this case the loading change around the

bitcoin boom, but they are on this parallel path. bitcoin is not -- if bitcoin was not as hot it has been, would there be such a demand? on the others, is part of the coin boom, and we have seen record prices today, would it be as significant if we would see more storage built around legitimacy and credibility of the crypto world. this year we have had so many examples of that. guests who have come on bloomberg, high net worth individuals who have been vocal about their holdings of cryptocurrencies. the obvious stories like companies -- stories from companies like tesla and elon musk buying bitcoin. the coin-based listing, in many ways, is this further to opportunities you haven't -- you

have a conversation around cryptocurrency. it all comes together in that way. in terms of performance, this is a direct listing, slightly different than a traditional ipo. it is something the market is getting used to. we have had spotify, palantir who have all gone through this process. i want to -- >> i want to ask, you're up there in toronto, i want to think of it as just north of ohio, when you're geographically above western new york, but you have been ahead of the game in can do in terms of it going. you've got three etf's publicly traded already in canada, why is the regulatory regime in canada

more accepting of this than what we have seen there in the u.s.. -- in the u.s., i am in berlin, i sometimes get. john: i think the canadian market, at least pockets of it have always been venture related. in canada, the cannabis experiment a few years ago was a good example of the markets being receptive to making a market for an asset there is interest round. not to say there aren't some complicated storylines. right now people are busy downloading crypto trading apps i.e. a cooling base.

some have complained that the reddick -- the regulators, and their opinion, were not quite ready for that, but in the listing of products there was a general belief that yeah, there was some willingness to facilitate trading in this, and beyond the etf's, a great example would be longtime bloomberg guests who listed his business that goes wrong around the whole crypto -- cryptocurrency world. >> then of course you have the weed stocks, ahead of the game being legalized in canada as well. i want to get over to chenal he best sick, our wall street reporter who has been covering this.

>> as you pointed out, there is 261 point three million shares going for $424 a piece, they briefly touched $425. i want to ask with the mood is on the floor, but i know everything is all digital there. i one thing to understand from john's point is how volatile the earnings are. if you multiply that by four over four quarters, their only really trading at times sales. if you use all of the annual revenue of last year, there trading at more than 70 -- 70% times. that just shows you how while the gap would be.

if they keep you face the first quarter, extensive elusive to other countries. >> one of the big curiosities beyond the fact that a coin based listing or record price go hand-in-hand. as you see more ways for investors to get into this market, would there be one pocket preferred over another? you have heard of it in the idea of let's say, there is a large of investors who could gain exposure by buying space. for have is seen as a caveat for all this. but the commodities guy from bloomberg intelligence do not

put a lot of faith into that argument because generally speaking it has been put to him that this cryptocurrency -- >> bitcoin is the original. we are looking to firms like tesla and paypal and people will try to switch of the way they played asset class. is the most trusted and soon anyways. then things like stable corn if you want things morally to the dollar. with that said, it is bitcoin that we watch for a lot of reasons. within 50% -- more than 50% of trading volumes come from

bitcoin. the custody interests where they searched as for your supplies. the more they expanded into other types of services we him simmers promotion event reality alone the folks who really care about the alone. today is symbolic of cryptocurrencies becoming a much larger part of the financial system. in my mind, that story was done by 10:00 a.m.. the timing is impeccable, because if you think about it, was was in the -- a -- sec backlog, no matter what it was

the timing was amazing, especially if you think about any of listing that might happen in the space. though bitcoin prices look like then. when they have the same velocity as the this year? >> a helpful perspective. thanks much. on a j. lo you have goldman sachs shape -- on a day like today you have goldman sachs, j.p. morgan, i'm sure they're having private conversations around what their next move will be. let's bring in crystal to see who has those solutions to reporting. crystal, i know you have them working the phone and try to get

an about to where they would land. you give us a sense of what you have been hearing and watching throughout this process? >> we will watching the indications coming in around 10 this morning. despite being the largest ever company to of. as gee said, that is 100 million, a figure. it is now trading around 400, so 70 is 100 million this is deus company ever to use the sway avenue, but is trading well.

strangers alone more buyers's -- buyers and sellers. clearly there are sellers in the market. it does not seem like those are people who just got their hands on it and flip it. are there big shareholders or employees at home weeks day's the as first of all, is a direct listing. you managed to. it is hard to get a read on where the supplies coming from. it has only been a few minutes prior to that it was institutional investors that have a broker and work with

nasdaq today. train the first train there were no riccio investors. it is vi we started have -- that is why i have since got my hands on the number in the rices went up. >> where there any lockup periods, restrictions, or with anyone who holds shares can sell them? >> anyone who has shares can sell them. >> the whole idea is behind the company has lost. that is no restriction. anyone who has it, whatever they got it, they can sell it at this point. >> it is such an interesting

dialogue around how long you want to own thing -- own something. >> one of the things you share from people in the bitcoin world, especially if there is someone who wants to move in coin base of the. it is this group deep convictions for investing in the long-term. it's a most like there are pockets of investment communities of people who say the -- review hearing any of that on the road to the ipo? i just want to get a sense of the kind of investor base that is committed to something like a coin base.

the silken valley farmers have been long relievers in the crypto future and investing in coin. soon the vehicle/decade some of the scene where pricing goes from here. >> it is harder and harder to find a crypto skeptic these days. the crypto community is a lot like equity investment community. you have your day traders. you have your deep value investors. that exists in all spectrums in the crypto world as well. in coin based case specifically, we have seen longtime holders, perhaps tens of thousands of

dollars, and they turn 200 of millions today. coin base is a public company. we can see more day traders and more short-term investors including british companies. it varies, we see all of them across coin base and the fruit go community. >> to your point, and bitcoin, 2% of the wallets hold 95% of the wealth. it is highly constant traded. wall street bests now would caught a diamond hands culture. chris oh, see you, thank you very much. and they have to get back your live blog, and our bloomberg

folders and fall. that's review noel carlsen we, the founder and ceo of crypto hedge fund folly chain. here is the coin base. would you think of a holders of this stock? do they have diamond hands? >> i think they do. the whole crypto thing is a phenomenon. it is a very deep belief. i don't think you're going to see a lot of weak hands here. >> let's just talk about, and

look, we have countless american success stories that inspire everyone. they inspire start founders and investors. for your early association with a company that was based on some conviction around how the world in currencies might evolve, and if you have any that was found in 2012 a san francisco apartment, wish bosch with him when your first for seen. >> is reckless having been in the cryptocurrencies face for 10 years now. this started as an open source project. the last in years of progress

has been excellent initial. for me this is just the beginning of mainstream moment. thereby we hang in no sosua mostly logical paradigm shift shooting action -- the mis-c and traditional stock markets. this is a tipping point. it is the beginning of the technological development and title transformation. >> where do you see coin base going then, will off? is this a threat to the banks? >> be much deeper threat is the

actual cryptocurrency technologies themselves. using things like smart contracts, you can automate the services with software, which we already have. the area is nascent, but it is growing exponentially. i do think in the long term, that is the real threat. one problem there is they can never compete because they are competing with peer-to-peer global protocol system. it is not a business model that they can emulate. >> and to build on that for a second, because i think for now, we're talking about the direct listing for a company largely known as a cryptocurrencies

exchange. the business is evolving. is it too simplistic in your pain to look at this as a trained huff or through currencies. >> can interact with your -- cross that bridge and enter the crypto economy. once you're inside the crypto economy the skies sky is the limit. it is really a completely new paradigm. i think many people underestimate the sheer number of users and amount of capital that is used by the systems. i do think that over time, businesses will rely on that

legacy banking bridge. the after -- the actual crypto technology will end up disrupting most traditional financial services and businesses, and even over a long enough time disrupting the corporate structure and limited liability structure it self. we do have information in the contracts shareholders. >> i think i saw 43 million users of coin base, 7000 institutional users, already a huge base. i'm wondering about your fund, poly chain. in you i hedge fund or king solely by crypto? i am coin base shares personally

-- >> i am coin based shares personally. a lot of that is more cutting edge, exotic technologies, but we are also big believers in coin based in the long term. >> aloft, thank you. as we continue to track the trading room the direct listing of coin base. somebody who knows the story well is josh mcfarland. josh needing the investments of coin base in the firm. nice to have you back. before we talk a little about the road for you guys to become an investor, what is your reaction to this trading in coin

base? >> i've got to hand it to the team here for what they have built and i am appreciative to be a part of it. the interesting thing about this entire space and coin based being at the center of it is how long term -- your previous guests today good job of highlighting what is possible across the infrastructure and how it is changing, and i really think we are just getting started. >> how many are rushing to sell at this level and how we are going to be dedicated in the mission? one of the reasons -- >> one of the reasons i invested in coin based back in 2017 was because of a lunch i had with brian armstrong.

when google went public i saw so many people around me come into substantial wealth quickly. when i was talking to brian about this, we were washing the price of bitcoin going from 600 to 2000. i think what is interesting about this moment in time where coin base goes from here is that the company is built with maximum lists when it comes to their belief in what crypto and the crypto economy could do for the world. not just some missionaries certainly none mercenaries. there will we look at the pages that are going to be turned over here in this company's direction, i leave most people who that were deeply invested in this company and economy are

long term thinkers about what is going to possible. i think this is usually a million for and decades. we only have 30 sales left unfortunately, there is a deeper conversation we could have, but there is a lot of noise on this wednesday. in a word or two, would you think is the game plan going forward? going to be a lot of long term commitment, so how do you keep your eye on the prize? >> i think it comes back to why people are invested in the space. i've had the good fortune of work and was so many of the different people across the company in almost every capacity and i've got to tell you these

people are missionary driven toward the vision of bringing the crypto economy to the world. the fairness, transparency, democratization runs deep in their blood and i think it will be quite reasonable for them to stay focused. >> josh thank you for being with us. right now we're looking at a trade of $381 per share. still worth almost $100 billion. this is bloomberg. ♪

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first for news. there is good news after the johnson & johnson coronavirus vaccine were put on hold. pfizer and biotech will raise vaccine distributions to the more this quarter. the additional supplies glad since you hundred million doses -- supplies will add to the 200 million doses of pfizer. fbi director christopher wray says his agency a and a new investigation into china every 10 hours. >> we have now over 2000 investigations that tied back to the chinese government. on the economic espionage side alone is at any --