Future Crypto IPOs: What VCs Predict Next

The blockbuster IPO of Circle last month has reignited interest in crypto listings. As macroeconomic conditions improve and regulatory signals become more favorable, several companies, including Gemini and Bullish, are preparing to enter the public markets. Venture capitalists believe that the IPO opportunity could remain open unless the macro environment changes for the worse. Diogo Mónica, a partner at Haun Ventures and executive chairman of Anchorage Digital, describes this as "the first leg of a multi-year cycle," pointing to an increased pipeline of S-1 filings and a growing appetite from public markets for recurring-revenue crypto businesses. Richard Galvin, from Digital Asset Capital Management, mentions he knows of approximately 15 crypto IPOs anticipated this or next quarter, excluding treasury firms. Cosmo Jiang from Pantera Capital expects about 3-5 crypto companies to go public this year based on current conditions. This momentum is driven by fundamental factors, not just timing. VCs highlight product maturity, substantial revenue growth, and a conducive policy environment. Mónica notes that USDC settlement volumes are now competitive with Visa, making stablecoin platforms more appealing to traditional investors. He also mentions that numerous crypto businesses are generating over $100 million in annual recurring revenue, with margins resembling those of SaaS businesses, presenting attractive valuation metrics for public investors. The current regulatory climate in the U.S. may not last forever, which could prompt companies to act while conditions are favorable. Companies ready for IPOs generally fall into four categories: exchanges, custodians, SaaS-like infrastructure firms, and stablecoin platforms. Mónica emphasizes the importance of firms having significant revenue, predictable cash flows, and audited financials — criteria typical of exchanges and custodians. Rob Hadick from Dragonfly suggests that public markets will favor crypto businesses that align with established fintech or SaaS models. Investors identified several strong IPO candidates, including Kraken, Gemini, BitGo, and Anchorage. Other mentions included OKX, Uphold, FalconX, Ledger, Chainalysis, and Fireblocks. While these companies are exploring the IPO option, VCs acknowledge not all may meet the necessary criteria. Jiang from Pantera Capital highlights his firm’s close relationships with leading banks, organizing pre-IPO workshops for portfolio companies to ensure they understand IPO readiness. While the IPO market is open again, most crypto VCs maintain that their investment strategies remain unchanged, particularly regarding equity vs. tokens. Tokens continue to offer liquidity and flexibility that favors early-stage firms, even as IPOs signal growing confidence in equity exits. Roman from Hack VC notes that while IPOs make equity a more attractive exit path, tokens dominate due to their flexibility. Mónica acknowledges that while tokens still command a liquidity premium, the public market's recent interest in equity could lead Haun Ventures to factor IPOs into their valuations. Hadick believes Dragonfly's approach remains steady, but the IPO landscape enhances confidence in equity-backed firms. Overall, VCs are keenly observing the IPO space while maintaining a preference for tokens as exit strategies.