Coinbase Opens Up IPO Access for U.S. Retail Traders
Coinbase has opened up IPO access for U.S. retail traders, allowing them to buy shares in initial public offerings at the official offer price before the stock begins trading publicly.
The feature is being rolled out through Coinbase Capital Markets, a FINRA-registered broker-dealer that acts as an agent and does not underwrite deals or hold inventory.
To participate, eligible customers must fund their account to cover the cost of the shares they want, then submit a 'Conditional Offer to Buy' once the expected price range for the offering becomes public.
The allocation system favors investors who intend to hold their shares rather than sell them quickly, and selling IPO shares within 30 days can result in being barred from future IPO participation for 60 days.