Wall Street Shifts Focus to IPO-Ready Crypto Firms Instead of Altcoins
New research indicates that Wall Street is increasingly investing in late-stage crypto companies that are preparing for initial public offerings (IPOs), altering the dynamics of the upcoming altcoin cycle.
Wall Street’s increased focus on late-stage crypto companies ready for public offerings is poised to transform the landscape for the upcoming altcoin season.
Recent insights indicate that firms like Matrixport have reported that over $200 billion in crypto entities are set to go public, potentially raising between $30 and $45 billion. Matrixport asserts that the investment landscape is shifting away from early-stage ventures towards scalable companies primed for public trading.
Bitcoin miners’ sustained liquidations have reportedly countered ETF inflows, leading to decreased volatility and a reduction in Bitcoin’s attractiveness for risk-tolerant investors. As stated in a Friday post by Matrixport:
“Wall Street, however, has every incentive to extend the bull market, with up to $226 billion in crypto IPOs waiting in the pipeline that could raise $30 - $45 billion in new capital.”
This development coincides with several notable companies, such as Kraken, preparing their IPO documentation. Kraken has recently raised $500 million at a valuation of $15 billion, as reported by Fortune on September 25.
Meanwhile, BitGo has filed to list its shares on the New York Stock Exchange, with approximately $90.3 billion in assets under its management and a user base of more than 1.1 million.
Matrixport’s findings align with prior speculation that the current crypto cycle might not witness a broad altcoin season as seen in previous years. Analysts suggest only select altcoins with institutional support will thrive in the upcoming market landscape. Nic Puckrin, co-founder of The Coin Bureau, noted:
“While this market cycle has been very different from 2021 so far, we are beginning to see signs of altcoin outperformance, albeit very selectively.”
As ETF filings await approval, experts are looking forward to potential altcoin support to emerge from institutional activities. The SEC’s forthcoming decisions on five relevant ETF applications could impact the market significantly, marking a pivotal moment in the evolving crypto economy.
