Get Ready for a Potential Wave of Crypto IPOs!
As bitcoin prices rise and the crypto industry anticipates another all-time high, experts predict a potential surge in initial public offerings (IPOs), as reported by Bloomberg.
- Analysts suggest that if crypto asset prices continue to climb, the next 18 months could witness the largest wave of crypto-related IPOs in history.
- Matthew Kennedy, a senior market strategist at IPO researcher Renaissance Capital, highlighted in an interview with Bloomberg on June 6 that as many as 15 companies could go public if market momentum persists.
Potential Crypto IPO Avalanche
Kennedy noted that even if bitcoin remains around $70,000, it could still prompt more crypto companies to enter the public market.
βIf Bitcoin remains on its current trajectory, I am sure that would open the floodgates. If it stays at its current level, that would also support more public issues.β
The outlook on crypto has shifted significantly following the approval of spot Bitcoin ETFs by the SEC in January 2024, along with the subsequent approval of Ethereum ETFs four months later.
- Companies like Chia Network and Circle have filed confidentially or submitted draft registration statements for IPOs, potentially launching this year.
- Trading platform eToro is also contemplating an IPO, while Animoca Brands eyes several potential IPO candidates for 2025 or 2026.
Despite facing SEC challenges, Kraken, a US-based crypto exchange, is actively pursuing a public listing and is seeking pre-IPO funding to the tune of $100 million, as reported by CryptoPotato.
Institutional investor interest in crypto remains strong, with nearly 40% of family offices exploring or actively investing in crypto assets. A recent report by Bloomberg noted that 43% of US retail investors are likely to invest in crypto within the next year.
Projections for the Crypto Market
While overall crypto market capitalization has been steady in recent days, bitcoin has maintained its position above $70,000, just 3.4% below its previous peak.
- Financial expert Robert Kiyosaki has predicted that bitcoin could reach $350,000 by late August this year.
- Analysts at Secure Digital Markets have suggested that bitcoin is on track for a potential surge to historic highs, with only a 4% gap remaining.
A move towards six-figure territory for bitcoin is likely to trigger more crypto firms to consider going public.
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