Crypto Buy-Side Demand Surges 28% on IPO Expectations
Highlights
- Institutional investors have increased their demand for crypto firms.
- Potential IPO talks have boosted the appetite of investors.
- The surging price of Bitcoin to a new all-time high this year topped reasons.
Crypto companies have recorded popular demand for their shares due to this year’s bull market and talks of going public from many companies. This comes after reports of crypto exchange, Kraken considering going public in the coming months. This has led to increased institutional investment in crypto companies resulting in a positive market effect.
Crypto Buy-side Demand Jumps
Demand for crypto secondaries, shares held by early investors and employees have surged this year as positive sentiments dominate the industry. According to Forge Global data, crypto buy-side demand rose 126% this year compared to the first half of 2023 and 28% from the second half of last year.
Equities in private crypto companies like Ripple, Kraken, and Chainalysis have soared. Andrew Saeta, Forge’s co-head of institutional sales explained that both individual and institutional demand for equities are on the rise.
“There’s pretty strong individual investor demand. On the institutional side, we’ve seen an increase. I would say the market is the most robust that we’ve seen in a while… A lot of people are excited about the prospects of what’s going forward. Especially since there are going to be changes from the regulatory perspective.”
To put this into perspective, prices for equity for Kraken are up 77% this year while Chainalysis and Ripple are up 17% and 13% respectively. Despite this increased demand, crypto interests are below 2021 bull run peaks.
Bitcoin Price and IPO Inspires Surge
This development is linked to the increased price of Bitcoin and other assets this year. BTC tapped a new all-time high this year after its price hit $73k on the back of institutional inflows. The approval of spot Bitcoin ETFs and trading spurred inflows from traditional investors as it opened up a new window to the market. Similarly, altcoins and crypto stocks marked a similar rally this year. IPO talks for Kraken and other firms also attracted investors.
Also Read: Kraken Vs SEC: Oral Arguments Begin, Here’s What to Know
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