Is Crypto IPO Season Coming to America?
Contributed Opinion

1. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found  below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

2. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

NinePoint Disclosures

The Ninepoint Web3 Innovators Fund is generally exposed to the following risks. See the simplified prospectus of the Fund for a description of these risks: No Assurance in Achieving Investment Objectives; Loss of Investment; Active Management Risk; Concentration Risk; Asset Class Risk; Blockchain Risk; Cryptocurrency Risk; Disruptive Innovation Risk; Emerging Technologies Risk; Communication Services Companies Risk; Information Technology Companies Risk; Liquidity Risk; Equity Securities Risk; General Risks of Foreign Investments; Trading Price of ETF Units; Cease Trading of Securities Held by Ninepoint Web3 Innovators Fund; Small Company Risk; Specific Issuer Risk; Trading Price of Underlying Funds Risk; Derivative Instrument Risk; Securities Lending Risk; Reliance on the Manager; Manager and Custodian Standard of Care; Potential Conflicts of Interest; Valuation of Ninepoint Web3 Innovators Fund; Currency Risk; U.S. Currency Exposure; Substantial Securityholder Risk; No Ownership Interest in the Portfolio; Changes in Legislation; Inflation Risk; Not a Trust Company; Cyber Security Risk; COVID-19 Outbreak; Tax Risks.

Disclaimer: The information and/or materials contained in this email and any attachments are derived from sources believed to be reliable when transmitted, but the accuracy or completeness of the information is not guaranteed. The opinions, estimates, projections and/or recommendations contained in this email and any attachments are those of the author as of the date hereof, and are not given or endorsed by any of Ninepoint Partners LP unless otherwise independently affirmed by Ninepoint Partners LP.

The opinions, estimates and projections (“information”) contained within this report are solely those of the author and are subject to change without notice. The author makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, the author assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Ninepoint is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Please contact your own personal advisor on your particular circumstances.

Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any investment funds managed by Ninepoint Partners LP. These views are not to be considered as investment advice nor should they be considered a recommendation to buy or sell.

The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Funds may be lawfully sold in their jurisdiction.

On April 1, stablecoin issuer Circle filed to go public — kicking off what could become a wave of crypto listings. The IPO gives us a rare inside look at one of the industry's most important, long-running firms. Circle's flagship product, USDC, is a $60 billion stablecoin used by millions around the world.

I've known CEO Jeremy Allaire for nearly a decade and have long admired his vision and focus in building Circle. We first spoke in 2015, when I was researching Blockchain Revolution. Back then, Jeremy told me he wanted Circle to become the "Google of Capital," laying out a bold vision:

"A person should be able to download an app, store value digitally in whatever currency they want — dollars, euro, yen, renminbi, as well as digital currency — and make payments instantly or nearly instantly with a very high level of security and without privacy leakage. Most importantly, it will be free."

Nearly 10 years later, Circle has stayed remarkably true to that north star — and it's closer than ever to reaching it.

If you're interested in learning more, Jeremy and I recently sat down for a conversation on Circle's podcast "The Money Movement." We explored Circle's journey and the role of stablecoins in the broader blockchain revolution. Watch it here.

And like Google before it, Circle is going public. The company is targeting a $4 billion valuation — the biggest crypto IPO since Coinbase went public in 2021. According to its filing, Circle generated $1.7 billion in annual revenue, a 39.3% gross margin, and $167 million in operating profit (all figures USD). The IPO is being led by J.P. Morgan and Citigroup.

Stablecoins — tokens backed by fiat currencies, usually U.S. dollars — make it fast, cheap, and easy to move value across borders. They're already doing more dollar volume annually than Visa or Mastercard. Though first adopted by crypto traders, stablecoins are gaining traction in emerging markets, where local currencies are volatile, and banking services are unreliable. Circle has leaned into this trend, partnering with local payments firms to bring USDC to the masses.

Today, Circle is the world's second-largest stablecoin issuer, behind only Tether.

The hope is that this IPO marks the beginning of a broader trend — a crypto IPO season that brings more private companies to public markets. But there are headwinds.

Market volatility, much of it tied to tariff uncertainty, has kept many IPOs grounded. Deal volume is down year over year. High-profile offerings like AI data center CoreWeave have had to reprice. Others, like Fold (FLD), listed via SPAC (special acquisition corporation — an alternative to IPO) to a muted response. One odd exception: right-wing news outlet Newsmax surged 2000% in its debut, powered by memestock mania.

Still, there are good reasons to be bullish on crypto IPOs.

First, the regulatory environment is improving. The current administration and incoming SEC chair are taking a more constructive approach to crypto. The Circle filing came a day before the House Financial Services Committee advanced a bill on stablecoin regulation. A Senate version, dubbed GENIUS, passed in March. The tide is turning — regulatory headwinds are becoming tailwinds.

Second, there's a backlog of quality crypto firms ready to file. Many had planned to go public during the last cycle but were delayed by regulatory uncertainty. Now they're well-positioned. eToro has already filed. Others like Bullish, Gemini, Kraken, Anchorage, Chainalysis, Figure, MoonPay, Ripple, and Consensys are rumored to be waiting in the wings.

Third, crypto M&A in the first quarter was strong, despite the slow start to IPOs. Kraken acquired NinjaTrader. Coinbase is eyeing Deribit. There's activity in this space already, spurred no doubt by the friendlier regulatory environment, suggesting when the IPO window reopens, crypto firms may be the first through.

A growing roster of publicly traded crypto companies is a win for the industry and for investors. Many institutions and retail investors alike want exposure to the growth of digital assets but can't or won't hold crypto directly. Public equities provide an on-ramp.

Going public also brings transparency. IPO filings require companies to open their books, submit to investor scrutiny, and meet high standards of disclosure and governance. This builds trust—not just with investors, but with customers, partners, and regulators.

As Jeremy Allaire put it: "Becoming a publicly traded corporation on the New York Stock Exchange is a continuation of our desire to operate with the greatest transparency and accountability possible."

Circle is showing the way. Others will follow. And as more crypto-native firms enter the public markets, the industry will gain greater legitimacy and become more. That's good news, we believe — for markets, for innovation, and for society.

Alex Tapscott is the managing director of the Digital Asset Group, a division of Ninepoint Partners LP. He is also the author of "Web3: Charting the Internet's Next Economic and Cultural Frontier." Sign up for his newsletter, Digital Asset Digest.