What to Know:
- Crypto financial services firm Matrixport reports over $200 billion in crypto companies preparing for IPOs, potentially raising $30-$45 billion in new capital.
- High-profile crypto firms, including Kraken and BitGo, are among those planning IPOs.
- Matrixport’s report suggests a move away from the traditional boom-and-bust cycle of digital assets, with Wall Street’s increasing interest in late-stage crypto firms.
Ripple, a key player in the crypto market, could potentially witness a shift in the traditional boom-and-bust cycle of digital assets, based on new research. This shift is due to Wall Street’s increasing interest in late-stage crypto firms.
Matrixport, a crypto financial services firm, revealed that crypto companies worth over $200 billion are preparing for initial public offerings (IPOs). These IPOs might raise between $30 billion and $45 billion in new capital, signifying a significant injection of funds into the crypto space. The research indicates a pivot in investor focus, moving away from early-stage bets towards scalable, IPO-ready companies primed for public markets.
The continued selling by Bitcoin miners and early adopters has nearly offset the ETF and treasury inflows, reducing volatility and muting Bitcoin’s allure for risk-seeking investors. However, Wall Street is well-positioned to extend the bull market, with up to $226 billion in crypto IPOs lined up, ready to raise substantial new capital.
This news comes as multiple high-profile crypto firms gear up for their IPO plans, including crypto exchange Kraken. The exchange recently secured $500 million in funding at a $15 billion valuation. This news follows closely on the heels of crypto custodian BitGo filing to list its common stock on the New York Stock Exchange through a US IPO. BitGo boasts about $90.3 billion in assets under custody, a user base of 4,600 entities, and 1.1 million users.
Matrixport’s report backs previous industry insights, predicting the 2025 crypto market cycle will not feature a typical altcoin season. Instead, it will likely see select altcoins with institutional backing or robust ETF filings outperform the rest of the market.
Onchain dynamics hint at the beginnings of an altcoin season, despite Bitcoin’s dominance dropping to year lows. This market cycle has differed from 2021, with select altcoins beginning to outperform, according to industry analysts.
Analysts are also highlighting the pipeline of ETF filings awaiting approval as the next potential catalyst for the incoming altcoin season. The crypto industry is keenly waiting for the Securities and Exchange Commission’s (SEC) decision on outstanding crypto ETF filings related to at least five tokens.
Among these filings are the Litecoin (LTC) ETF by Canary Capital, and multiple Solana (SOL) ETF filings by Grayscale, VanEck, 21Shares, and Bitwise. Later in the month, XRP (XRP) ETF filings from Grayscale, WisdomTree, Bitwise, and CoinShares are awaiting feedback. Additionally, Grayscale’s Dogecoin (DOGE) ETF and Cardano (ADA) ETF are expected to receive a final decision before the end of October.
In conclusion, the growing interest from Wall Street and the preparation of multiple high-profile crypto firms for IPOs indicate a potential shift in the traditional boom-and-bust cycle of digital assets. The future of the crypto market, including Ripple and XRP, is poised for exciting developments and significant institutional adoption.
