Crypto exchange Gemini is going to hold an IPO. Is there a thaw in the crypto sector?
The successful debut of stablecoin issuer Circle, whose shares soared nearly 170% on the first day, may encourage other companies to list
Cryptocurrency exchange Gemini, which was founded by billionaire twins Tyler and Cameron Winklevoss, said it has confidentially filed for an initial public offering in the United States. Cryptocurrency companies are rushing to capitalize on a recovery in investor interest in risky assets, and the wave of cryptocurrency IPOs could be a turning point for the industry, Reuters notes.
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Gemini Space Station, which offers customers deals in more than 70 cryptocurrencies, announced that it has not yet determined the size of the offering and the price range of the shares, but intends to conduct the IPO specifically in the United States. The offering will be possible after the SEC completes its review of the filings, the company said.
Gemini, founded in 2014, provides users with a platform to exchange and store cryptocurrency assets such as bitcoin. Its founders, the Winklevoss brothers, became famous after a lawsuit against Facebook and its CEO Mark Zuckerberg, whom they accused of stealing the social network's idea. In 2008, the dispute was settled and the twins received monetary compensation and Facebook shares.
Has the crypto thaw begun?
Gemini announced its intention to become a public company the day after Circle, the first issuer of stablecoins, went on the exchange. Its shares rose nearly 170% in debut trading. Such success may encourage other crypto companies to list as well, writes Bloomberg.
«It would be crazy for crypto companies planning an IPO not to make the first move after seeing Circle trading,» said Renaissance Capital senior strategist Matt Kennedy to Reuters. - The crypto market can be unpredictable, so when you get a chance like this, you should take it.»
After the collapse of crypto exchange FTX in 2022, many institutional investors avoided the digital asset market, the agency noted. But the sector got a new impetus after the election of a pro-cryptocurrency president in the U.S. and a recovery in asset prices. According to CoinMarketCap, the total capitalization of the global crypto market is about $3.3 trillion, and the value of bitcoin is holding steady above $100,000.
The wave of cryptocurrency IPOs could be a game changer for the industry, Reuters writes. This suggests that the market is increasingly confident in its ability to attract a broad audience of investors and is moving toward greater transparency, increased regulation and access to capital - all of which are helping digital assets take a place in the traditional financial system, Reuters notes.
«A successful exchange listing would be confirmation that the thaw in the crypto sector is real. If underwriters feel the influx of new commissions, we should expect a flurry of placements - from fintech to AI chips,» accounts Michael Ashley Shulman, chief investment officer at Running Point Capital Advisors.
