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The broader dealmaking market is facing headwinds due to renewed trade tensions sparked by U.S. President Donald Trump, and this uncertainty is particularly relevant for the crypto IPO landscape.
While several major listings across different sectors are being put on hold – such as Klarna Bank, StubHub Holdings, insurer Ategrity Specialty Holdings, and adtech business MNTN – the potential impact on highly anticipated crypto IPOs like Circle and eToro is drawing significant attention.
As we've previously reported, Circle, the issuer of the USDC stablecoin, has been making significant strides towards a public listing, tapping giants like JP Morgan and Citi to spearhead its IPO. This move was seen as a landmark event, underscoring the growing maturity and institutional acceptance of stablecoins within the digital asset ecosystem. However, the current climate of economic uncertainty, fueled by potential tariffs, is casting a shadow over these plans.
It would appear that investors are wary of Trump's tariffs, particularly when trying to forecast the success of IPOs by firms like Circle. The likelihood of Circle's IPO declined on Polymarket, as analysts predict that Trump's tariffs may delay or prevent crypto businesses from seeking funding.
The situation could be even more precarious for crypto companies compared to traditional internet firms like Klarna, which has already shelved its IPO ambitions. Despite Circle's recent Form S-1 filing with the SEC, signaling its intent to go public, there are increasing reports suggesting the company is reconsidering its timing. The original article highlights that "crypto equity in particular is unappealing to investors in the current deflationary and uncertain climate."
This news arrives shortly after reports of eToro's $4.5 billion IPO bid on the Nasdaq. As we detailed, eToro's revenue surged in the past year, driven overwhelmingly by cryptocurrency trading. However, the prevailing market jitters could dampen investor appetite even for companies with strong crypto-related growth.
The broader concerns about market stability and investor sentiment will undoubtedly be a factor for Kraken and Gemini to consider as they move towards potential public listings. Kraken is eyeing a 2026 IPO, while Gemini has confidentially filed, potentially listing sooner. The impact of Trump's trade policies on the overall IPO market could influence the timing and valuation of these highly anticipated crypto exchange debuts.
The anxieties surrounding lending rates, hesitant underwriters, and cautious venture capitalists are all factors that could specifically impact the aspirations of crypto companies looking to go public.
