Trump-fueled crypto frenzy sparks rush to Wall Street IPOs
Bullish, a cryptocurrency exchange operator that counts billionaire Peter Thiel among its backers, was the latest to tap U.S. public markets on Wednesday, raising over $1.1 billion.
Analysts point to rising mainstream adoption and deep-pocketed corporate backers as forces reshaping the sector's fundraising landscape and boosting demand for new crypto stocks.
INDUSTRY BELLWETHER
Circle went public in June in a blowout NYSE debut, with shares more than doubling at the open to value the stablecoin issuer at about $18 billion. Stablecoins are a type of cryptocurrency pegged to a fiat currency, usually the dollar.
"More than anything, Circle's trading has really been the biggest green light for the industry," said Matt Kennedy, senior strategist at IPO-focused research and ETFs provider Renaissance Capital.
Days after that IPO, the U.S. Senate passed the landmark Genius Act establishing a regulatory framework for stablecoins, fueling a rally in the stock.
Circle's shares closed the previous session at $153.16, versus its IPO price of $31 apiece. The company is now worth around $35 billion, according to LSEG-compiled data.
"Positive trading and a friendly regulator make for a powerful combo," Kennedy added.
CRYPTO MARKET MOMENTUM
The growing roster of IPO candidates underscores how far the sector has come since the 2022 collapse of crypto exchange FTX triggered a crypto winter, crushing valuations and investor confidence.
After years of write-downs and retrenchment, the rebound in prices and sentiment is driving companies to tap public markets.
"Private investors are likely seeking liquidity. Many VCs and private equity firms have held these positions for years," said Kat Liu, vice president at IPO research firm IPOX. "These are no longer purely speculative businesses."
The passage of the Genius Act, coupled with Circle's blockbuster market debut, has spurred a wave of other crypto firms to press ahead with listing plans. BitGo, Grayscale and Gemini are among those that have already submitted confidential filings to list their shares.
Analysts also view crypto exchange Kraken as a potential IPO candidate in the sector.
SPAC DEALS While a handful of crypto companies have gone public via IPOs, many are opting to merge with special purpose acquisition companies, which typically undergo less scrutiny. A SPAC is a publicly-listed shell company with a pool of capital. A private company can list its shares via a merger with a SPAC. The SPAC route has mostly been popular among smaller startups aiming to emulate Michael Saylor's Strategy, which pioneered the "crypto holding company" model. By holding tokens such as bitcoin and ether on their balance sheets, these companies position themselves as an indirect vehicle for investors to gain crypto exposure.
Bitcoin, the world's largest cryptocurrency, is forecast to continue climbing and end the year at $200,000. Standard Chartered expects ether, the second-largest, to finish 2025 at $7,500. Bitcoin closed at $120,181.98 and ether at $4619.73 on Tuesday.
"These treasury strategy trades are going to continue for a while. And as long as they trade at a premium, you're going to see people raise money," said Joe Nardini, head of investment banking at B. Riley Securities.
US IPO REBOUND
The broader U.S. IPO market has also steadily recovered this year, after stalling briefly in April due to uncertainty created by Trump's sweeping tariffs.
There have been 216 IPOs on U.S. exchanges so far this year, the most since 2021, raising a total of $39.83 billion, compared with 118 offerings in the same period a year ago, according to Dealogic data.
Bankers expect a strong fall IPO window, with high-profile startups such as buy now, pay later lender Klarna and software firm Genesys set to hit the market.
Firefly Aerospace's soaring space-tech debut alongside Chime's and Figma's first-day surges have injected fresh momentum into a market hungry for standout new offerings.
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