In a short time, the development of the crypto market and possibly the wave of IPOs (initial public offerings) have captured my attention.
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This excitement commenced when Bitcoin rose again to about $70,000 which is close to its record high. However, this increase isn’t just an arbitrary event; it has far-reaching consequences for the whole cryptocurrency market. Usually, when the leading coin goes up, others follow suit. And with this current momentum, some experts are predicting anywhere from 15 new crypto companies going public in the next year and a half – that’s enormous! It’s like how a series of dominos fall as Bitcoin’s triumph motivates these companies into publicly selling their shares.
Kennedy of Renaissance Capital believes that Bitcoin could drive more IPOs if it continues like this. These public offerings will still be possible even when Bitcoin maintains its current level. It is amazing the extent to which Bitcoin’s behavior affects the larger market; it’s not just about a single currency but rather, the confidence that permeates through the entire system.
One of the pivotal moments for this bullish view was the SEC approving spot ETFs for bitcoin earlier this year and ETH ETFs a few months ago. This time, regulation paved the way for these cryptos while making them more accessible to retail investors. This was one of the biggest turning points in favor of cryptocurrencies as legit assets that average people can buy into with confidence. After issuing this statement, SEC has changed drastically how people perceive digital currencies thereby shifting them from being exotic to mainstream products.
Some companies have already begun preparing to go public. For instance, Chia Network and Circle. They have confidentially filed or submitted draft registration statements, which indicates that they can be listed on an exchange at any moment. eToro is also among them considering an IPO and Animoca Brands has a line-up of potential IPO candidates in the next couple of years too. Even Kraken, despite some regulatory hurdles, is looking to raise $100 million through a pre-IPO round. These companies consider the current market conditions as conducive for such a move into public markets.
What accounts for this enthusiasm? Partly it’s driven by institutional movement towards crypto. According to Bloomberg, about 40% of family offices now invest in or are exploring cryptocurrency investments. And this means that there is a good number of high-net-worth investors who have faith in this industry. Furthermore, Motley Fool’s latest survey showed that 43% of retail investors across the US are likely to purchase cryptos within one year from now. This broad enthusiasm from both quarters – institutional and individual – suggests that the market is reaching maturity levels
Even though the overall crypto market cap has been quite stable, Bitcoin has played a major role by holding its profits and maintaining higher than $70,000. The analysts are upbeat with some even projecting that Bitcoin could hit six-figure levels any time soon. This could be followed by a wave of digital currency companies rushing to go public in even greater numbers which can cause another big surge in cryptocurrency investments. Hence, if this happens again, there will be an even more rapid increase in the number of IPOs as successively more investors commit their funds to the market.
When you look at all these, it’s obvious that something major is about to happen in the crypto space. Whether you’re an investor or just curious about cryptocurrency or a crypto enthusiast, the next 18 months could bring some of the most exciting changes we’ve seen yet.
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