The Next Wave of Crypto IPOs: What Investors Should Know

The cryptocurrency industry is entering a new chapter. After years of boom-and-bust cycles, growing institutional interest, and a maturing regulatory environment, a wave of crypto companies is preparing to go public. Major players like Kraken, BitGo, Grayscale, and Bullish are lining up, following the explosive debut of Circle’s IPO earlier this year.

Crypto Markets Are Surging

Crypto markets are on a strong upswing. Bitcoin is at all-time highs, Ethereum is gaining ground, and stablecoins are handling hundreds of billions in daily settlement volume.

This momentum isn't driven by hype alone. Regulatory developments, especially in the U.S., have helped open the door for more crypto firms to consider public listings. A friendlier tone from policymakers has encouraged companies to step into the spotlight. Circle’s IPO, which raised more than $1 billion and saw its stock multiply in value, has become a key reference point for other companies thinking of doing the same.

Still, some analysts believe the market may be approaching a short-term peak. If that’s true, crypto firms will need to decide whether to push forward with IPO plans or hold back and wait for more stable conditions.

Who’s Going Public?

Kraken

Kraken is one of the longest-running crypto exchanges, with more than 10 million users and a full suite of services, including retail trading, staking, and institutional offerings. It posted $1.5 billion in revenue last year and is looking to go public after a strong private funding round.

Why it matters: Kraken has the scale and credibility to attract serious investor interest. Its diversified business model could give it an edge in volatile markets.

The challenge: An ongoing lawsuit from the SEC could delay its IPO or affect investor sentiment. Regulatory uncertainty remains a big wild card.

BitGo

BitGo focuses on secure storage of digital assets, serving institutional clients that need reliable custody infrastructure. The company is planning a public debut in the near future and has backing from firms like Goldman Sachs.

Why it matters: As crypto adoption grows, so does the need for secure, institutional-grade storage. BitGo offers a less speculative, more infrastructure-driven investment opportunity.

But: BitGo doesn’t have the name recognition of larger exchanges, which might limit its appeal to retail investors unless it can clearly communicate its value.

Grayscale: The Asset Management Leader

Grayscale is best known for its crypto investment products, including its popular Bitcoin and Ethereum trusts. The recent approval of spot ETFs in the U.S. has strengthened its position, and it has filed confidentially for an IPO.

Why it matters: Grayscale provides an easy on-ramp for investors who want exposure to crypto without directly holding tokens. It has a strong brand and a large institutional following.

However: Its future depends heavily on the continued popularity of crypto investment products. If demand weakens, the business could face pressure.

Bullish: The Newcomer With Big Backers

Bullish is a relatively new crypto exchange backed by Peter Thiel. It launched in 2021 and is focused on advanced trading technology and deep liquidity. An IPO is on the table, though the exact timeline remains unclear.

Why it matters: Thiel’s involvement adds credibility, and Bullish’s modern platform could appeal to institutional investors.

Still: It is entering a crowded field and has yet to prove it can capture significant market share. Success will depend on how well it can differentiate itself.

The Broader Landscape

Regulation Is Shifting

In the U.S., crypto regulation is evolving. Recent leadership changes and legislative moves have created a more favorable environment for crypto businesses. Policies supporting stablecoins and digital asset innovation have helped reduce the regulatory pressure that once held IPOs back.

That said, risks remain. Lawsuits like the one facing Kraken show that legal uncertainties still pose a threat. A change in political leadership or policy focus could also disrupt momentum.

Market Timing Is Everything

Right now, investor sentiment is strong, but some analysts believe the market could correct soon. If a downturn hits, it could affect the appetite for newly listed crypto companies, especially those with high valuations.

Still, some areas of the market look more resilient. Stablecoins are seeing steady growth, and institutional demand for secure infrastructure is helping companies like BitGo. These factors could support the long-term performance of select crypto IPOs even in more volatile conditions.

What Investors Should Consider

Crypto IPOs offer a new way to invest in the digital asset space without buying tokens directly. They provide exposure to a range of business models, from trading platforms to custody and asset management.

The Upside

Access: Public listings let traditional investors participate in crypto growth through familiar investment channels.
Diversification: Each company offers a different angle on the crypto market, which allows for more tailored investment strategies.
Legitimacy: IPOs require transparency and regulatory compliance, which could help bring more trust to the industry.

The Risks

Regulatory hurdles: Ongoing investigations or lawsuits can delay IPOs or hurt valuations.
Volatility: If crypto prices drop sharply, newly listed companies may suffer, especially those valued at peak hype.
Speculation: As in 2017, there’s a risk that some companies could go public based on buzz rather than business fundamentals.

Final Thoughts

The new wave of crypto IPOs is more than just a trend. It reflects the industry’s growing maturity and the desire of leading companies to secure long-term capital and public trust. For investors, these IPOs could provide a gateway to the digital asset world through more traditional financial instruments.

But caution is still warranted. While companies like Kraken and Grayscale bring experience and name recognition, others like Bullish have more to prove. Each firm comes with its own risk profile, and broader market conditions will play a big role in determining who thrives and who stumbles.

The Next Wave of Crypto IPOs: What Investors Should Know

Crypto Markets Are Surging