In a notable shift, Wall Street’s interest in the cryptocurrency landscape is now gravitating towards late-stage crypto companies gearing up for initial public offerings (IPOs) rather than speculative altcoins. According to recent research from crypto financial services firm Matrixport, more than $200 billion worth of crypto firms are currently in the pipeline for IPOs, potentially raising between $30 billion and $45 billion in fresh capital.
This development highlights a growing preference among investors for established, scalable firms that are poised to enter public markets. Matrixport notes that ongoing selling pressure from Bitcoin miners and early investors has significantly reduced market volatility, diminishing Bitcoin’s appeal for risk-seeking participants. Nonetheless, Wall Street remains incentivized to catalyze a bull market, with an impressive $226 billion in prospective crypto IPOs awaiting approval, which could substantially bolster the capital influx into the sector.
The research coincides with several crypto firms that are executing their own IPO strategies. For instance, Kraken, a leading cryptocurrency exchange, has reportedly secured $500 million in funding, achieving a valuation of $15 billion, as revealed by anonymous sources cited by Fortune. Furthermore, crypto custodian BitGo has filed to list its common stock on the New York Stock Exchange as of September 19, boasting approximately $90.3 billion in assets under custody and a robust user base of 4,600 entities and over 1.1 million users.
Matrixport’s findings align with insights from various industry analysts who suggest that the anticipated 2025 cryptocurrency market cycle may diverge from historical patterns. Analysts predict that rather than a widespread altcoin season reminiscent of previous years, the market may see only selected altcoins outperforming, specifically those with strong institutional backing or existing exchange-traded fund (ETF) applications.
Conversely, some analysts are observing potential signs that an altcoin resurgence could be on the horizon. Nic Puckrin, a crypto analyst and co-founder of crypto educational platform The Coin Bureau, suggests that Ethereum (ETH) is showing resilience and outperforming while Bitcoin’s dominance wanes. Puckrin notes that historical trends indicate these dynamics could signal a shift back towards altcoins, though he cautions that such trends have been selective in nature.
Others in the industry are betting on the pipeline of ETF filings awaiting approval as catalysts for an eventual altcoin uptrend. Ki Young Ju, founder and CEO of blockchain analytics firm CryptoQuant, recently remarked on social media about the potential for a new phase termed “paper-backed altseason,” suggesting that the anticipation surrounding ETF approvals may invigorate various altcoins.
The crypto sector is awaiting critical decisions from the Securities and Exchange Commission (SEC) regarding outstanding ETF applications related to multiple tokens submitted earlier in October. Notably, Canary Capital’s Litecoin (LTC) ETF faced a deadline on October 2, but the SEC has remained silent, leaving market participants speculating whether this is a result of the ongoing US government shutdown or the introduction of new listing standards that could alter the relevance of existing deadlines.
Additionally, multiple Solana (SOL) ETF submissions from prominent firms like Grayscale, VanEck, 21Shares, and Bitwise expect a decision by October 10. As October progresses, XRP (XRP) ETF filings from Grayscale, WisdomTree, and others are also awaiting regulatory feedback by the end of the month, making it a critical period for both crypto firms and potential investors.
As the landscape of cryptocurrency continues to evolve, it remains to be seen how these developments will play out and influence the broader market dynamics in the months to come.
