The first financial report after going public, cryptocurrency exchange Bullish has turned a profit, and the Coindesk index aims to become the "MSCI of the crypto world."

The cryptocurrency exchange Bullish, which just listed on the New York Stock Exchange, has not only delivered a report showing a turnaround to profitability but has also received a key U.S. regulatory license that opens the door to the world's largest market, revealing its ambition to become the "MSCI of the cryptocurrency space."

On September 17, Bullish, led by former NYSE President Tom Farley, released its first earnings report as a publicly traded company. As of June 30, for the second quarter, the company achieved a net profit of $108.3 million, a stark contrast to a net loss of $116.4 million in the same period last year. This marks a significant turning point for the company following its listing.

Despite the substantial turnaround in net profit, the details of the report also revealed a more complex picture. Excluding one-time items, the company's adjusted loss for the quarter was $6 million, compared to an adjusted profit of $4.8 million in the same period last year. Adjusted revenue was $57 million, down from $60.7 million a year earlier. This may raise market concerns about its core business's ability to sustain growth.

Although the adjusted data faced pressure, Bullish's management remained optimistic about the future. CEO Tom Farley stated that the work done in the second quarter is bringing strong momentum into the current third quarter. Bullish expects adjusted earnings for the third quarter to be between $12 million and $17 million, with adjusted revenue projected to be between $69 million and $76 million, indicating a potential recovery in growth.

On the operational front, the company's trading activity continues to show strong growth. The report indicated that total trading volume for the quarter increased from $133 billion in the same period last year to $179.6 billion.

Securing New York Business License, Opening the U.S. Market

During the earnings call, Bullish announced a milestone critical to its strategy: it has obtained a BitLicense virtual currency business license issued by the New York State Department of Financial Services (NYDFS), allowing it to provide spot trading and custody services for institutional clients and high-frequency traders in New York.

Farley stated during the call that this is the "final key project" for the company to launch its business in the U.S. He referred to the New York BitLicense alongside the licenses the company already holds in the EU, Hong Kong, and the UK as the "quad factor," representing the four most difficult top-tier digital asset regulatory licenses to obtain globally.

We look forward to bringing our exchange and leading liquidity to the U.S., and we believe this is the largest geographic market to date.

Despite obtaining the pass to enter the U.S. market, Farley also cautiously managed market expectations, noting that the company's target clients are institutional investors, and it will take time for these clients to fully integrate into the platform and begin large-scale trading.

CoinDesk Index Aiming for "MSCI of the Crypto Space"

Bullish's ambitions extend beyond its exchange business. Farley clarified the strategic positioning of its information services brand CoinDesk, particularly its index business, in response to analysts' questions "What will enable us to become the MSCI of the cryptocurrency space?" Farley retorted during the conference call. He pointed out that as the market shifts from solely investing in Bitcoin and Ethereum to seeking a broader asset portfolio, the demand for benchmarks like the S&P 500 or MSCI Emerging Markets Index is growing. Bullish's CoinDesk 5 and CoinDesk 20 indices were created for this purpose.

Bullish primarily serves institutional clients, providing spot and derivatives trading services for digital assets. The company acquired the well-known cryptocurrency media outlet CoinDesk in 2023. Its history can be traced back to Block.one, which set the record for the largest initial coin offering (ICO) in history through the EOS project.

A significant announcement came during the meeting. Farley excitedly announced that a trust product based on the CoinDesk 5 index, in collaboration with Grayscale, had received approval from the U.S. Securities and Exchange Commission (SEC) to convert into an ETF during the meeting. "This could become one of the largest multi-token ETFs in the world," he stated.

As of June 30, the assets under management (AUM) linked to the CoinDesk indices had reached $41 billion.

Strong debut, high institutional interest

The attention on this financial report stems from Bullish's extremely successful IPO in August this year. Led by former NYSE president Tom Farley and backed by tech billionaire Peter Thiel, the company debuted on the NYSE on August 13 under the ticker "BLSH."

An article from Wall Street Journal reported that its first day of trading was explosive, with the opening price soaring 143% from the offering price of $37, ultimately closing up nearly 84%, bringing its market capitalization close to $10 billion. This IPO not only raised $1.1 billion for the company but also highlighted the strong interest from institutional investors in the cryptocurrency sector with its pricing far exceeding the guidance range.

Reports indicate that well-known institutions such as BlackRock and "Cathie Wood" of ARK Invest have expressed interest in subscribing.

However, Bullish's path to listing has not been smooth. This was the company's second attempt to go public in four years. It had previously planned to go public through a merger with a special purpose acquisition company (SPAC) during the cryptocurrency bull market of 2021-2022, but that deal fell through at the end of 2022 due to deteriorating market conditions. Now, the company has successfully entered the capital market through a traditional IPO