Markets
Biggest wave of crypto IPOs coming if crypto prices continue to rise (analyst)
As bitcoin prices approach a new all-time high, the crypto industry is bracing for a potential wave of initial public offerings (IPOs), according to Bloomberg.
If crypto asset prices continue to rise, the next 18 months could see the largest wave of crypto-related IPOs on record, said Matthew Kennedy, senior market strategist at IPO researcher Renaissance Capital. sotck exchange. interview with Bloomberg on June 6.
He added that up to 15 companies could go public if market momentum continues.
Cryptocurrency IPO Avalanche
The analyst added that even if BTC stayed where it is at around $70,000, it would still attract more crypto companies to go public.
“If Bitcoin stays on its current trajectory, I’m sure that would open the floodgates. If it remains at its current level, it would also support more public issues. »
The general sentiment towards crypto has changed dramatically with the approval of spot Bitcoin ETFs by the Securities and Exchange Commission (SEC) in January 2024, and the additional green light of Ethereum ETF four months later.
Crypto companies such as blockchain provider Chia Network and stablecoin issuer Circle have filed confidentially 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 lined up for 2025 or 2026.
Despite battling SEC charges, US crypto exchange Kraken has long had ambitions to go public and is currently in talks to raise a pre-IPO capital round. 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 in or exploring crypto investments, Bloomberg reported. Additionally, according to a recent Motley Fool survey, a record 43% of U.S. retail investors will likely purchase cryptocurrencies in the next year.
Crypto Market Projections
While the crypto market cap remained stable over the past two days, Bitcoin took charge and held on to its 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 the end of August this year.
Meanwhile, analysts at Secure Digital Markets said: “Bitcoin looks set to hit all-time highs, with a gap of just 4%.”
A move into six-figure territory for BTC is indeed likely to catalyze the IPO of crypto companies.