Bullish Upgraded to Buy by ClearStreet as Exchange Gains Market Share, Expands Into U.S.

ClearStreet analyst Owen Lau upgraded shares of crypto platform Bullish (BLSH) to Buy from Hold on Tuesday, pointing to the company’s growing market share and product expansion, even as he trimmed his price target from $60 to $57.

Lau said Bullish’s share of global crypto spot trading jumped from 2.1% in the third quarter to 3.7% in November, taking volume from rivals Bitget, Bybit and Gate. The company’s October trading volume rose 70% from the prior quarter’s monthly average. Lau credited Bullish’s post-IPO credibility and its push into new product lines for the gains.

Bullish recently rolled out options trading and began operating in the U.S. after receiving a BitLicense, giving it access to one of the world’s largest crypto markets. The exchange blends a traditional order book with an automated market maker, aiming to provide deep liquidity for both retail and institutional traders. Lau said this broader suite of services could lift recurring revenue from 28% of total sales in 2024 to 70% by 2027.

Despite a 21% decline in Bullish’s stock since late October, Lau called the sell-off “overdone.” He attributed recent weakness across blockchain stocks to macroeconomic worries and the market’s shifting focus toward AI.

“The fundamentals of blockchain remain very strong,” he wrote, citing insights from industry conferences such as Money20/20 and Ripple Swell.

Bullish’s valuation has also reset sharply. The company’s forward EV/EBITDA multiple fell to 25x from 45x in September, bringing it in line with Coinbase after previously trading at a premium. ClearStreet forecasts Bullish’s revenue to grow at a 25% annual pace through 2027, outpacing Coinbase’s 14%.

Lau added that the U.S. government’s reopening this week could restore investor sentiment and pave the way for new crypto regulation, including the proposed Clarity Act. Still, he cautioned that rising interest rates, competitive pressures and volatile token prices remain key risks for the exchange.

Bullish is the owner of CoinDesk.