Wall Street races to list crypto firms worth $226 billion as Kraken secures $500M pre-IPO funding

Wall Street’s push to list crypto companies valued at $226 billion marks a strategic shift toward institutional-scale digital assets, with firms expected to raise between $30 billion and $45 billion through initial public offerings, according to a Matrixport report released Friday.

The research suggests that investor focus is moving away from early-stage speculative bets and toward larger, scalable companies already positioned for public markets.

“Wall Street has every incentive to extend the bull market, with up to $226 billion in crypto IPOs waiting in the pipeline that could raise $30–$45 billion in new capital,” — Matrixport analysts, in a Friday statement on X.

This shift highlights how IPO-ready crypto firms are increasingly being treated as mature financial entities rather than volatile startups.

Major players prepare public offerings

Several high-profile companies illustrate this transition. Kraken, one of the world’s largest crypto exchanges, reportedly secured $500 million in funding at a $15 billion valuation, according to Fortune sources on September 25. The move is widely seen as a precursor to its IPO filing.

Meanwhile, BitGo, a Palo Alto-based crypto custodian, submitted paperwork to list its common stock on the New York Stock Exchange on September 19. The company disclosed $90.3 billion in assets under custody, serving 4,600 institutional clients and more than 1.1 million retail users.

IPO-ready crypto firms are not only scaling infrastructure but also proving resilience in a market that has historically been driven by speculation, — Elena Hughes, Senior Analyst at Canary Capital, in comments to Bloomberg.

By focusing on large custodians and exchanges, Wall Street investors appear to be signaling confidence in the institutional backbone of the digital asset economy.

ETFs and selective altcoin season

Beyond corporate IPOs, analysts suggest that ETF approvals could become the next catalyst for IPO-ready crypto firms and altcoin performance.

Matrixport’s report argues that the 2025 cycle is unlikely to resemble past “altseasons,” when nearly all tokens experienced explosive growth. Instead, it predicts that only select altcoins particularly those with institutional backing or exchange-traded fund (ETF) applications will outperform.

Nic Puckrin, co-founder of The Coin Bureau, echoed this view:

“While many investors remain myopically focused on Bitcoin, ETH is quietly outperforming in the background as Bitcoin dominance drops toward yearly lows. Historically, these have been signals of a reversal into altcoins, though it has been selective so far,” — Nic Puckrin, analyst and co-founder, Coin Bureau.

Pending ETF filings could further reinforce this trend. As of October, the U.S. Securities and Exchange Commission (SEC) is reviewing multiple applications, including:

• A Litecoin ETF from Canary Capital (decision expected Oct. 2).
• Several Solana ETF filings from Grayscale, VanEck, 21Shares, and Bitwise (decision due Oct. 10).
• XRP ETFs submitted by Grayscale, WisdomTree, Bitwise, and CoinShares (expected between Oct. 19–24).
• Dogecoin and Cardano ETF filings from Grayscale, both facing final deadlines before month’s end.

Entering paper-backed altseason, — Ki Young Ju, CEO of CryptoQuant, in a recent post on X.

If approved, these ETFs could amplify institutional inflows and directly benefit IPO-ready crypto firms tied to altcoin infrastructure.

Wall Street’s long-term strategy

The entrance of IPO-ready crypto firms into public markets also underscores a strategic shift in how traditional finance engages with digital assets. Historically, cyclical surges in Bitcoin and altcoins have been followed by sharp corrections, deterring long-term institutional involvement.

Now, with public listings on the horizon, Wall Street is aligning with firms that offer scale, compliance readiness, and revenue diversity. This could stabilize the sector while providing investors with exposure to crypto through more conventional vehicles.

Wall Street is no longer treating crypto as a speculative detour but as a sector where companies can become publicly traded, regulated entities, — Mark Rosen, Professor of Finance at NYU Stern, in an interview with CNBC.

As IPO pipelines expand, analysts predict that IPO-ready crypto firms could reshape market sentiment by anchoring digital assets within traditional capital markets. With potential proceeds of up to $45 billion, the sector is gearing up for one of its most consequential phases yet.

Outlook: a maturing cycle

The convergence of IPOs, ETF approvals, and selective altcoin performance suggests that the next phase of crypto markets may be more structured than past cycles. Instead of a free-for-all rally, IPO-ready crypto firms could help define a more sustainable growth trajectory.

For crypto investors, this means greater access to regulated equity exposure. For policy makers, it underscores the urgency of crafting frameworks that can accommodate both traditional IPOs and blockchain-native assets.

Ultimately, the trajectory of IPO-ready crypto firms signals a maturation of the industry as one where public markets and regulated ETFs could replace speculative frenzy with institutional-scale adoption.