Biggest Wave of Crypto IPOs Coming if Crypto Prices Continue Up (Analyst)
As bitcoin prices approach another all-time high, the crypto industry is preparing for a potential wave of initial public offerings (IPOs), according to Bloomberg.
If crypto asset prices continue rising, the next 18 months could see the biggest wave of crypto-related IPOs on record, said Matthew Kennedy, a senior market strategist with IPO researcher Renaissance Capital, in an interview with Bloomberg on June 6.
He added that as many as 15 companies could go public if market momentum continues.
Crypto IPO Avalanche
The analyst added that even if BTC stays where it is at around $70,000, it would still spur more crypto companies to go public.
“If Bitcoin stays 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.”
Overall sentiment about crypto changed dramatically with the approval of spot Bitcoin ETFs by the Securities and Exchange Commission (SEC) in January 2024, and the further green light of Ethereum ETFs four months later.
Crypto companies such as blockchain provider Chia Network and stablecoin issuer Circle have confidentially filed or submitted draft registration statements for IPOs, which could potentially happen as soon as this year. Additionally, trading platform eToro is also considering an IPO, while Animoca Brands has several potential IPO candidates waiting for 2025 or 2026.
Despite battling SEC charges, U.S. crypto exchange Kraken has long had ambitions to go public and is currently in talks to raise a pre-IPO round of capital. On June 6, CryptoPotato reported that the exchange aims to raise $100 million before the move.
Institutional investor interest in crypto is high, with nearly 40% of family offices actively investing or exploring crypto investments, reported Bloomberg. Additionally, a record 43% of US retail investors are likely to buy crypto in the next year, according to a recent Motley Fool survey.
Crypto Market Projections
While crypto market capitalization has remained flat over the past couple of days, bitcoin has been in the driving seat and has held on to gains to keep it above $70,000 and just 3.4% away from its all-time high.
Earlier this week, Rich Dad Poor Dad author Robert Kiyosaki predicted that BTC would reach $350,000 by late August this year.
Meanwhile, analysts at Secure Digital Markets said, “bitcoin appears poised for a potential surge towards historic highs, with a mere 4% gap remaining.”
A move into six-figure territory for BTC is indeed likely to catalyze crypto companies to go public.
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