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 US 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.
Circle went public in June in a blowout New York Stock Exchange (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 exchange-traded funds (ETFs) provider Renaissance Capital.
Days after that IPO, the US 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.
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.
While a handful of crypto companies have gone public via IPOs, many are opting to merge with special purpose acquisition companies (SPAC), 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 merger with an 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 $4,619.73 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.
The broader US 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 US 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. Still, bankers warn the IPO market remains highly sensitive to shifts in sentiment and broader volatility.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Singapore key exports slip in July as US shipments tumble 42.7pc
SINGAPORE: Singapore's non-oil domestic exports slipped 4.6 percent in July from a year earlier, government data showed Monday, as shipments to the United States plunged by more than 40 percent. Southeast Asia's second-largest economy is heavily reliant on international trade and is vulnerable to any global slowdown induced by the tariffs – even if Singapore only faces a baseline 10 percent levy from US President Donald Trump. On August 6, Trump announced a 100 percent tariff on chips from firms that do not invest in the United States, and threatened levies of up to 250 percent on pharmaceutical imports. Singapore economy grew 1.1% in 2023, data shows The 42.7 percent July contraction in main exports to the US – Singapore's biggest market – was largely caused by a 93.5 percent decline in pharmaceutical shipments, the government body Enterprise Singapore said on Monday. Meanwhile, exports of specialised machinery dropped 45.8 percent and food preparations were down 48.8 percent. Non-oil domestic shipments to China and Indonesia also declined in July, but grew to the EU, Taiwan, South Korea, and Hong Kong. The city-state last Tuesday raised its 2025 economic growth forecast, but warned the outlook for the rest of the year remains clouded by global uncertainty, in part due to US tariffs. The trade ministry lifted its gross domestic product (GDP) growth forecast to 1.5-2.5 percent from an earlier range of 0-2.0 percent. Prime Minister Lawrence Wong on Sunday said that he took 'little comfort' from the 10 percent baseline tariff rate the US imposed on Singapore. 'Because no one knows if, or when, the US might raise the baseline, or set higher tariffs on specific industries like pharmaceuticals and semiconductors,' he said in a National Day speech. 'What we do know is that there will be more trade barriers in the world. That means small and open economies like us will feel the squeeze,' Wong added.
Business Recorder
an hour ago
- Business Recorder
European shares flat as investors await Ukraine talks
European shares were little changed in early trade on Monday, with investors on the watch for Ukraine and European leaders' meeting with US President Donald Trump, following a Russia-US summit that ended without an immediate agreement. The pan-European STOXX 600 index were flat, as of 0704 GMT, after logging a second straight weekly gain on Friday. Ukraine's Volodymyr Zelenskiy will meet Trump along with other European leaders in a bid to draw out a peace deal that will not favour Moscow. Trump met with his Russian counterpart Vladimir Putin on Friday and agreed that a peace deal should be worked upon without a ceasefire. Novo Nordisk added 4.1% after the drugmaker' s weight-loss drug Wegovy received an accelerated approval by the US Food and Drug Administration to treat a serious liver condition. Vestas shares jumped 9.7% and ranked among the top gainer on the STOXX 600 after IRS safe harbor guidelines. Commerzbank fell 3.7%, after Deutsche Bank cut the stock's rating to 'Hold' from 'Buy'.
Business Recorder
an hour ago
- Business Recorder
PSX records gains as KSE-100 crosses 147,000
Market sentiments remained positive at the Pakistan Stock Exchange (PSX) as investors reacted positively to a sovereign credit rating upgrade and a steady stream of robust corporate earnings, with the benchmark KSE-100 Index gaining over 600 points during the intra-day trading on Monday. At 1:40pm, the benchmark index was hovering at 147,146.15, a gain of 654.52 points or 0.45%. Buying was observed in key sectors including cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including HUBCO, SNGPL, SSGC, MARI, OGDC, PPL, POL, MEBL and UBL traded in the green. Investor sentiments remained positive, buoyed by Moody's upgrade of Pakistan's sovereign rating and a wave of strong corporate earnings that kept sentiment upbeat. Moody's raised Pakistan's credit rating one notch to Caa1 from Caa2, shifting the outlook to stable. The decision, based on improving external buffers, fiscal consolidation, and progress under the IMF program, has provided a powerful boost to market morale. During the previous week, the PSX climbed to an all-time intraday high of 147,534 points before closing at 146,492 points, up 1,109 points or 0.8% on a week-on-week basis. Internationally, share markets edged higher in Asia on Monday ahead of what is likely to be an eventful week for US interest rate policy, while oil prices slipped as risks to Russian supplies seemed to fade a little. A general risk-on mood saw indices in Japan and Taiwan make record peaks, while Chinese blue chips reached their highest in 10 months. US President Donald Trump now seemed more aligned with Moscow on seeking a peace deal with Ukraine instead of a ceasefire first, after meeting Russian President Vladimir Putin in Alaska on Friday. Trump will meet Ukrainian President Volodymyr Zelenskiy and European leaders later on Monday to discuss the next steps, though actual proposals are vague as yet. The major economic event of the week will be the Kansas City Federal Reserve's August 21-23 Jackson Hole symposium, where Chair Jerome Powell is due to speak on the economic outlook and the central bank's policy framework. Markets imply around an 85% chance of a quarter-point rate cut at the Fed's meeting on September 17, and are priced for a further easing by December. The prospect of lower borrowing costs globally has underpinned stock markets, and Japan's Nikkei firmed 0.9% to a fresh record high. MSCI's broadest index of Asia-Pacific shares outside Japan was a fraction lower, having hit a four-year top last week. Chinese blue chips added 1.0%, bringing gains so far this quarter to almost 8%. EUROSTOXX 50 futures and FTSE futures rose 0.2%, while DAX futures firmed 0.1%. This is an intra-day update
