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Traditional stock markets are home to some of the most successful and innovative companies in the world. Yet, the giants of the crypto sector—those at the forefront of digital finance innovation—have remained conspicuously absent. I believe that’s about to change. In 2025, we’ll see more crypto firms secure IPOs than ever before.
That’s because the sector is undergoing immense transformation. After years of being sidelined and avoided by institutional investors who lacked confidence in cryptocurrencies, the sun is now shining brightly on digital assets.
Why IPOs were elusive until now
Before now, multiple hurdles have blocked the path to listing for crypto firms and kept them from getting IPOs off the ground. The road to floating is paved with intense regulatory scrutiny from government agencies and bodies that have historically looked upon cryptocurrencies with skepticism at best and, at worst, disdain.
Questions over the classification of these assets and who is ultimately responsible for them have tied up progress and made the pathway to floating far more complicated. The lack of a clear legal framework left too much room for uncertainty and ultimately slowed progress.
That’s made clear by the fact that only one major crypto firm has successfully gained a place on a traditional stock market. That company was Coinbase, and they took another route to floating altogether. Instead of a traditional IPO, Coinbase secured its spot via a direct public offering, circumventing the need for institutional investors to come on board and avoiding the full weight of heavy regulatory and disclosure burdens.
Coinbase took this alternative route in 2021, but we’re looking at a drastically different environment in 2025 – an environment that will inspire a wave of crypto IPOs.
Institutional investors are now onboard
First, IPOs require a greater buy-in from institutional investors, and that’s already in place. With heavyweight asset managers such as Fidelity and BlackRock building up their crypto services throughout the 2020s, and the SEC approving spot Bitcoin (BTC) and then spot Ethereum (ETH) ETFs in 2024, according to Bloomberg, institutional investors have now built up cryptocurrency exposure. In fact, many now embrace digital assets.
This positive approach from institutional investors clears one hurdle to crypto firm IPOs, and another is steadily coming down, too.
A friendlier regulatory environment
Since the beginning of the year, the harsh glare of US regulatory bodies, namely the SEC, has eased off. With Gary Gensler, who was no friend to the crypto sector, out and the pro-crypto Paul Atkins in as Chair, we’re sure to see looser regulation.
We’re already seeing this new normal take hold. Since the start of the year, the SEC has dropped cases against some of the biggest names in the industry, including the likes of Coinbase, Robinhood, and Ripple.
The Department of Justice has taken a step back, too. It has disbanded its cryptocurrency-focused unit, handing the reins back to regulatory bodies to end “a reckless strategy of regulation by prosecution.” There are now fewer layers of complicated bureaucracy and intense scrutiny tying up crypto firms that wish to float.
Firms are also set to get more clarity over their regulatory position and responsibilities going forward—the very clarity they need when considering filing for an IPO. The SEC has launched the Crypto Task Force, which is leading the charge in establishing new, clear rules and processes for firms operating in the digital asset sector. With clear guidelines and guardrails in place, firms will have the confidence they need to take the next step and consider an IPO.
Bridging the gap between traditional and digital finance
The truth is, the shift is already underway. Major stablecoin issuer Circle has just filed for an IPO, with crypto exchange Kraken and coin issuer Ripple rumored to be following in their footsteps. Soon enough, we’ll see crypto companies, from major exchanges and issuers all the way through to mining firms, list.
They have weathered the regulatory storm and are now looking to send clear compliance signals. As they embark on the next phase of institutional and mainstream adoption, they know they must prove to investors that they operate transparently and within the law. They need to prove that they are safe, long-term bets, and they’ll do it by floating on traditional stock markets.
It is the natural next step in bridging the gap between the traditional finance sector and its digital counterpart. Significant progress has been made over the last few years, and there’s no denying that the change of administration in November 2024 has sped up the process even further. Crypto firms find themselves in an incredibly positive regulatory environment, and I have no doubt they will strike now.
For me, we’ll see record numbers of crypto firms filing for IPOs this year, and a record number of firms securing them, too. The IPO momentum is already in full swing. Before you know it, we’ll see the brightest and the best crypto firms take their rightful place on the biggest stock markets across the globe.
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