ClearStreet Upgrades Bullish to Buy, Citing Strong Fundamentals and Expansion
Crypto exchange Bullish (BLSH) has received a confidence boost from Wall Street, as ClearStreet analyst Owen Lau upgraded the stock to Buy from Hold on Tuesday, highlighting the company’s growing trading footprint and expanding product suite.
The upgrade comes even as Lau trimmed his price target slightly from $60 to $57, citing short-term valuation adjustments amid broader market turbulence.
Rapid Growth Amid Crypto Market Rebound
Lau pointed to Bullish’s accelerating market share as a key factor behind the upgrade. The exchange’s slice of the global crypto spot trading market climbed from 2.1% in the third quarter to 3.7% in November, positioning it among the fastest-growing platforms in the sector.
According to ClearStreet’s data, Bullish’s October trading volume surged 70% compared with the previous quarter’s monthly average — an indication that the platform is steadily capturing flow from competitors such as Bitget, Bybit, and Gate.io.
The analyst also credited Bullish’s post-IPO momentum and growing institutional credibility for this progress.
Since going public earlier this year, the exchange has sought to differentiate itself through an advanced hybrid model that combines a traditional order book with an automated market maker (AMM) system. This structure is designed to improve liquidity depth and price efficiency — a key draw for both professional and retail participants in an increasingly competitive landscape.
Expanding Product Lines and U.S. Market Entry
A central pillar of Bullish’s expansion has been its entry into the U.S. market following the receipt of a coveted BitLicense, a regulatory approval issued by New York’s Department of Financial Services.
The move grants Bullish access to one of the world’s largest crypto trading markets and signals its readiness to compete with major incumbents such as Coinbase and Kraken.
The company has also launched options trading, marking another milestone in its effort to diversify beyond spot markets.
Lau believes this product expansion could meaningfully reshape Bullish’s revenue profile, with recurring income expected to rise from 28% of total sales in 2024 to as much as 70% by 2027. Such a transition, he said, reflects the firm’s ongoing push to establish a broader, more stable business model built on regulated financial services.
Valuation Reset Creates Opportunity
Despite the company’s operational gains, Bullish’s stock has fallen 23.78% in the past month — a pullback Lau called “overdone.”
Bullish share price (Source: Google Finance)
He attributed the sell-off largely to macro headwinds, including investor caution surrounding blockchain equities and a market rotation toward AI-related stocks, rather than any deterioration in Bullish’s fundamentals.
“The fundamentals of blockchain remain very strong,” Lau wrote, referencing industry sentiment from major fintech gatherings such as Money20/20 and Ripple Swell. He emphasized that demand for digital assets and blockchain infrastructure continues to grow beneath the surface, suggesting the market may be undervaluing long-term innovation in the sector.
That sentiment is reinforced by a notable valuation reset: Bullish’s forward EV/EBITDA multiple has compressed from 45x in September to 25x, bringing it in line with Coinbase after months of trading at a premium.
ClearStreet projects Bullish’s revenue will grow at a 25% compound annual rate through 2027, significantly ahead of Coinbase’s 14% forecast, positioning it as a potential outperformer among publicly listed exchanges.
Analyst Sees Tailwinds from Regulatory Progress
Lau also pointed to macro and policy catalysts that could rekindle investor optimism. The reopening of the U.S. government this week could help restore confidence across financial markets and accelerate progress on long-awaited crypto legislation, including the proposed Clarity Act, which aims to define digital assets more precisely under U.S. securities law.
While such reforms could create a more predictable operating environment for regulated platforms like Bullish, Lau cautioned that several challenges remain on the horizon.
Rising interest rates, intensifying competition, and continued token price volatility could still weigh on trading volumes and valuations across the sector. Nonetheless, he argued that Bullish’s strategic direction and expanding product ecosystem provide a strong cushion against cyclical market risks.
A Broader Shift in Exchange Economics
Bullish’s recent trajectory reflects a broader evolution in the economics of crypto trading platforms.
With retail volumes stagnating across many exchanges in 2023 and early 2024, firms have increasingly turned toward institutional liquidity solutions, derivatives products, and recurring service models to diversify income streams. Bullish’s move into options trading and its emphasis on hybrid market infrastructure signal its alignment with this industry trend.
The exchange’s ability to maintain growth while many competitors consolidate or downsize has also strengthened perceptions of its resilience.
Analysts note that the firm’s blend of traditional market structure and decentralized liquidity tools gives it an advantage in adapting to shifting regulatory and technological landscapes.
Outlook: Rebound Potential Ahead
Although investor sentiment toward blockchain equities has cooled in recent weeks, ClearStreet’s analysis suggests that the underlying business metrics for Bullish remain robust.
With its expanding global market share, entry into regulated U.S. markets, and steady product innovation, the firm appears well-positioned to capture the next wave of institutional adoption — especially if clarity around digital asset regulation improves in 2025.
For now, Lau’s message to investors is one of cautious optimism: Bullish’s recent stock weakness may present a compelling entry point for those willing to look past short-term volatility and focus on long-term growth potential.
