Analyst: The two major factors suppressing CEX stock prices are dissipating, and further rise is still expected.

On June 28, the CEX was the best performer in the S&P 500 in June, with its performance driven by aggressive regulatory updates, product launches, and inclusion in the benchmark equity index at the end of May. The CEX is now on track for its best monthly performance since November last year, with a third straight monthly gain (up 43% in June alone) and a three-month winning streak for the first time since the end of 2023. On Thursday, the stock hit its highest level since its initial public offering in 2021. Oppenheimer analyst Owen Lau said the inclusion of the S&P 500, the passage of the GENIUS Act in the Senate and the strong performance of Circle have refuted the false narrative against CEXs, and people are waking up. TWO OF THE BIGGEST CONSTRAINTS ON CEX DEVELOPMENT – FEE COMPRESSION (WHICH DIDN'T HAPPEN, INSTEAD CEX CONTINUED TO BE PROFITABLE AND THEREFORE INCLUDED IN THE S&P 500 INDEX) AND REGULATORY UNCERTAINTY – ARE DISSIPATING, AND THE PASSAGE OF THE GENIUS BILL IS A GIVEN, DESPITE THE MAJORITY FINDING IT DIFFICULT TO REACH A CONSENSUS IN CONGRESS. Even though CEX shares have surged 44% this month, Devin Ryan, head of fintech research at Citigroup, sees further upside in its shares. He noted that the market has yet to fully appreciate the CEX's close partnership with Circle Internet Group, whose shares have skyrocketed by more than 500% since its listing on the NYSE on June 5.