They further explain if the market reaches the higher end, a new market could be opened with a new range, so making this effectively price discovery for non publicly traded companies, including McLaren, Reddit, SpaceX or OpenSea, Zapper, dYdX.

This hasn’t quite launched yet, with it to be seen what it will look like exactly once it is in hard code, but the idea is that once the company goes public, then the prePO price is settled at the company’s opening price on the first day of trading.

So in theory and perhaps even in practice this can allow for betting on startups even at the very early stages as well as mature companies that will probably go public at some point with the investor benefiting from the price appreciation that does finally settle once the company goes public.

“When the asset goes public, you can exit your position at a final settlement price, based on the price at the end of the first day of public trading for stocks, or on a time-weighted average price for tokens,” they say.

Eoin Treacy's view

Every major bull market comes up with a way for investors to believe they have an edge over everyone else. In the 1990s that was characterised by buying IPOs. During the housing bubble it was liar loans and zero down mortgages. Today, the tokenization of everything from art to companies is allowing private investors an opportunity to invest in private markets like never before.

What I find most interesting is the global financial crisis tutored everyone in the risks of owning illiquid securities during times of financial market stress. Today, no concern is being expressed at the risk this entails. After all, investors that followed this model are among the most successful in the world so it must be OK?

The reality is private asset valuations are extremely interest rate sensitive. Amid the enthusiasm for owning a piece of a promising company like SpaceX, there is no getting around the fact that it is a capital-intensive business, with an untested business model. How much of the valuation is predicated on access to cheap liquidity?

Growth stocks have staged a significant recovery over the last few months as bond yield contracted. The formalization of a Standing Repo Facility yesterday suggests unlimited potential for money printing when required. That’s not a reason to buy bonds which suggests yields may begin to rally again. Value may be about to stage a relative recovery compared to growth.