Paul Johnson BitGo’s IPO debut hit turbulence as shares fall below $18, reflecting cautious investor sentiment in crypto markets. Explore the factors behind the volatility and what it means for digital asset listings.
BitGo’s public debut on the New York Stock Exchange has turned into a rollercoaster, with the digital asset custodian’s shares sliding below their initial offer price amid early trading volatility. The choppy performance highlights shifting investor sentiment toward crypto IPOs and growing scrutiny of new public listings.
Shares of BitGo Holdings, priced at $18 per share for its initial public offering, initially surged approximately 25% on the first day of trading, fueled by strong demand from early investors. Yet the momentum quickly faded as profit-taking set in, leaving the stock to close only slightly above its IPO level. By Friday, BitGo shares had fallen as much as 13.4% below the initial offering, according to Yahoo Finance data.
Industry analysts point to multiple factors behind the sharp swings. A relatively limited public float typical of newly listed companies combined with broader uncertainty in crypto markets has created an environment ripe for volatility. “Investors are now evaluating IPOs through a more fundamentals-focused lens,” said Mike Bellin, an IPO expert at PwC. “Companies entering the market need a clear operational story and strategic direction to sustain momentum.”
BitGo, which provides digital asset custody and infrastructure services, currently manages more than $90 billion in assets under custody. The company first revealed its plans to go public in September 2025, filing the necessary documentation with the US Securities and Exchange Commission. Its IPO was seen as a major milestone for the digital asset space, which has been grappling with broader market stagnation and heightened regulatory scrutiny.
Despite the turbulent debut, the crypto IPO landscape continues to attract attention. Several notable industry players are reportedly exploring public listings even amid persistent market pressure. Hardware wallet provider Ledger is considering a US IPO with a valuation surpassing $4 billion, while digital asset exchange Kraken recently secured $800 million in private funding at a $20 billion valuation, keeping IPO speculation alive. Kraken Co-CEO Arjun Sethi emphasized that the company is not rushing toward a public listing, but the momentum reflects continued investor confidence in digital asset infrastructure.
The recent performance of crypto-related IPOs underscores a broader trend. Shares of companies that went public in 2025 have generally lagged behind the S&P 500, with mid-sized listings underperforming the most, according to Bloomberg data. The contrast with first-day surges like BitGo’s suggests that early excitement no longer guarantees long-term stability in public markets.
For investors, BitGo’s volatile debut serves as a reminder that the market has shifted toward a fundamentals-driven approach. Enthusiasm for digital asset IPOs is now tempered by a demand for clear business models, robust operational performance, and long-term strategic planning. While the crypto sector remains vibrant, market participants are showing heightened selectivity in evaluating which companies are positioned for sustainable growth.
As BitGo navigates its first weeks as a publicly listed company, all eyes will remain on trading patterns and investor sentiment. The performance of this IPO could shape expectations for upcoming crypto listings and signal how traditional market investors view digital asset custodians in an era of evolving regulations and market realities.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
