The Biggest Wave of Crypto IPOs to Come If Crypto Prices Continue (Analyst)

As bitcoin prices near another high, the crypto industry is gearing up for a potential wave of initial public offerings (IPOs), according to Bloomberg.

If the value of crypto assets continues to rise, the next 18 months could see the biggest wave of crypto-related IPOs on record, said Matthew Kennedy, senior market strategist at IPO researcher Renaissance Capital, in a June 6 interview with Bloomberg.

He added that if the market recovery continues, up to 15 companies may go public.

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Crypto IPO storm

The analyst added that even if BTC stays around $70,000, it will prompt more crypto companies to go public.

“If Bitcoin stays on its current trajectory, I'm sure this will open the floodgates. If it continues at its current level, it will also support a lot of public issues.”

The general sentiment about crypto changed dramatically with the approval of spot Bitcoin ETFs in January 2024 by the Securities and Exchange Commission (SEC) and four months later by the Ethereum ETF.

Crypto companies such as blockchain provider Chia Network and stablecoin issuer Circle have secretly filed or filed draft registration statements for IPOs, which could be as soon as this year. Additionally, trading platform eToro is also considering an IPO, while Animoka Brands has several IPO candidates waiting for 2025 or 2026.

Despite fighting SEC charges, US crypto exchange Kraken has long had ambitions to go public and is in talks to raise pre-IPO capital. On June 6, CryptoPotato reported that it aims to raise $100 million before the exchange moves.

Interest in crypto is high among institutional investors, with nearly 40% of family offices actively investing in or exploring crypto investments, according to 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 predictions

While crypto market capitalization has remained flat over the past couple of days, Bitcoin is in the driver's seat and is only 3.4% away from gaining over $70,000 and all-time highs.

Earlier this week, Rich Dad Poor Dad author Robert Kiyosaki predicted that BTC would reach $350,000 by the end of August this year.

Meanwhile, analysts at Safe Digital Markets said, “Bitcoin looks set to rise to historic highs, with only a 4% gap remaining.

A move into the six-figure range for BTC could actually encourage crypto companies to go public.