Paul Johnson Wall Street is shifting focus toward crypto IPOs, with over $200B in late-stage crypto firms eyeing listings. Here’s why institutional money may redefine the next crypto cycle.
Wall Street’s Crypto Strategy Evolves
For years, Wall Street’s involvement in digital assets largely revolved around Bitcoin ETFs and speculative altcoin cycles. But the game board is changing. A new wave of crypto IPOs could soon dominate headlines, redirecting billions of dollars in institutional capital from volatile altcoins toward late-stage, scalable companies preparing for public listings.
According to data from Matrixport, crypto firms valued at more than $200 billion are gearing up for IPOs, with projections of raising $30–45 billion in fresh capital. This shift suggests that Wall Street may be less interested in betting on unproven tokens and more focused on building exposure to established, revenue-generating companies.
Why IPO-Ready Crypto Firms Are Winning Wall Street’s Attention
The pivot is no accident. Bitcoin miners and early adopters have continued selling into the market, muting ETF inflows and stalling price momentum. In contrast, IPO-ready firms offer Wall Street something it craves: scalability, regulation, and institutional credibility.
Crypto custodians, exchanges, and infrastructure firms are now lining up for listings. BitGo, for example, recently filed for a U.S. IPO on the New York Stock Exchange, reporting $90.3 billion in assets under custody and a global user base. Similarly, Kraken is rumored to be preparing for its own IPO after securing $500 million in funding at a $15 billion valuation.
These IPOs could provide Wall Street with tradable, regulated equities tied to the crypto economy—without the volatility that comes with direct exposure to altcoins.
The Rise of “Paper-Backed Altseason”
This doesn’t mean altcoins are entirely off the table. Analysts argue that 2025 may usher in a “paper-backed altseason,” where only a handful of tokens with institutional backing or approved ETFs outperform the market.
Industry observers point out that Ethereum is already outpacing Bitcoin in key metrics, while SEC decisions on ETFs for Solana, XRP, Litecoin, Dogecoin, and Cardano loom large. However, unlike previous bull markets where thousands of tokens surged indiscriminately, this cycle appears selective—rewarding only those with strong institutional or regulatory tailwinds.
As CryptoQuant CEO Ki Young Ju recently put it, investors may be entering a “paper-backed altseason” rather than a free-for-all.
Wall Street’s Incentive: Extending the Bull Run
Matrixport notes that Wall Street has every reason to keep the bull cycle alive. With $226 billion in potential IPOs waiting in the pipeline, public listings could infuse billions of dollars into the crypto sector while offering new vehicles for traditional investors.
Unlike speculative bets on meme tokens or fringe projects, IPOs in crypto exchanges, custodians, and infrastructure providers offer Wall Street an avenue to profit from the crypto economy without exposing themselves to the “wild west” of unregulated assets.
This dynamic may not only extend the market rally but also stabilize it, reducing the boom-and-bust tendencies historically associated with altcoin cycles.
What This Means for Retail and Institutional Investors
For retail investors, the trend signals a more mature crypto market. Instead of chasing short-lived altcoin pumps, opportunities may increasingly lie in the equities of crypto-native firms listed on major exchanges. For institutions, the timing couldn’t be better—IPO-backed exposure offers a bridge between traditional finance and the blockchain economy.
Still, on-chain analysts caution against writing off altcoins completely. Ethereum’s relative strength and Bitcoin’s declining dominance could hint at the beginnings of a rotation. But unlike 2021’s chaotic altseason, investors should expect a far narrower field of winners.
Outlook: Crypto IPOs Could Define the Next Cycle
As the Securities and Exchange Commission weighs multiple ETF filings through October, the spotlight is shifting to another milestone: crypto IPOs. If Matrixport’s projections hold, billions of new capital could flood into the sector, not through tokens, but through public equity markets.
This evolution represents a maturing phase for the crypto industry. Wall Street’s appetite for IPO-ready firms signals that the next bull market may be built less on speculative token pumps and more on scalable companies that can thrive under the scrutiny of public markets.
In short: 2025 might not be the year of altcoins—it could be the year of crypto IPOs.
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.
