Crypto IPOs 2024: High Demand for Circle, Kraken, and Chainalysis Shares In Secondary Market

As per the latest Bloomberg report, private investors and crypto funds have been heavily buying the shares of private crypto companies that are gearing up for an crypto IPO in the coming months. Also, the price of secondary shares for private crypto firms has surged recently amid heavy demand.

Shares of Circle, Kraken, and Chainalysis In High Demand

As per the data from several trading venues, equities in top crypto firms such as Circle, Kraken, and Chainalysis have seen strong trading activity. As reported by CoinGape, crypto exchange Kraken is also considering a funding round ahead of the IPO this year.

As per data from Forge Global, the crypto buy-side demand during the first half of 2024 was 28% higher than it was during the second half of 2023. Due to this strong demand, the implied price for equity of crypto exchange Kraken is up 77% year-to-date. similarly, the share price for Ripple has soared 13% and that of Chainalysis is up by 17%. Andrew Saeta, co-head of institutional sales at Forge, said:

“There’s pretty strong individual investor demand. On the institutional side, we’ve definitely seen an increase. I would say the market is the most robust that we’ve seen in a while.”

Shares of Crypto Firms Are Soaring

The launch of the spot Bitcoin ETF was among the major drivers behind the crypto market rally of Q1, 2024. This drew institutional participation in the crypto space with big players now eagerly awaiting the launch of spot Ethereum ETFs.

On the other hand, crypto policy has taken center stage in the upcoming US presidential Elections 2024. Despite the growing interest in crypto, demand remains considerably below 2021 levels. The demand has yet to catch up with the surge in the valuations of the crypto firms.

About a year ago, investor Haun Ventures acquired coin security provider Fireblocks and Chainalysis at significant discounts. However, many secondary market deals are still trading at discounts ranging from 40% to 70% below their most recent funding rounds. Speaking on the development, Stan Miroshnik, founder of TenSquared Capital said:

“It’s a good time to be re-evaluating secondary opportunities as many of larger crypto companies have shown strong operating performance over the last six months and the fundamental have improved significantly. Many of these companies still have significant funding runway from prior rounds, are again generating cash, have weathered the down market and have come out lean and focused.”

If the crypto market rally continues, we can see a flood of crypto IPOs hitting Wall Street by end of 2024 or early 2025.