Wall Street capital is shifting away from early-stage bets and flowing into late-stage cryptocurrency firms preparing for initial public offerings (IPOs). This move, according to fresh research, could reshape the dynamics of the market and dampen hopes of a traditional altcoin season.
IPO Pipeline Worth Billions
Crypto financial services firm Matrixport revealed on Friday that more than $200 billion worth of crypto firms are preparing IPOs, which could generate between $30 billion and $45 billion in fresh capital. Investor appetite is increasingly focused on scalable, IPO-ready companies positioned to thrive in public markets rather than experimental early projects.
The report highlights that continued selling by Bitcoin miners and early adopters has almost offset inflows from exchange-traded funds (ETFs) and treasuries, lowering volatility and reducing Bitcoin’s attraction for risk-driven investors. However, Wall Street is strongly incentivised to extend the bull market, with up to $226 billion in crypto IPOs in the pipeline.
Major Firms Preparing Listings
Several leading crypto firms are already advancing IPO plans. Crypto exchange Kraken recently raised $500 million in funding at a valuation of $15 billion, according to sources cited by Fortune on 25 September.
Source: Matrixport
Just days earlier, crypto custodian BitGo filed to list its common stock on the New York Stock Exchange. Based in Palo Alto, the company reported $90.3 billion in assets under custody alongside a client base of 4,600 entities and 1.1 million users.
Selective Altcoin Season Emerging
Matrixport’s analysis supports predictions that the 2025 crypto cycle will not mirror past altcoin seasons. Instead, only a handful of altcoins with institutional support or ETF filings are likely to outperform.
Nic Puckrin, co-founder of The Coin Bureau, noted that while Bitcoin continues to dominate investor focus, Ethereum is showing quiet strength in the background. He pointed to Bitcoin dominance falling towards year lows as a potential signal for a selective shift into altcoins, although he cautioned that the trend remains limited.
Ki Young Ju, chief executive of CryptoQuant, echoed this view, describing the current environment as an “entry into paper-backed altseason” driven by ETF filings.
ETF Approvals Awaited
Market attention is now turning to upcoming decisions from the US Securities and Exchange Commission (SEC) on several crypto ETF applications. These decisions are widely seen as potential triggers for selective altcoin growth.
Canary Capital’s Litecoin ETF deadline passed on 2 October without a response, leaving uncertainty over whether the delay was linked to the US government shutdown or new listing standards.
Multiple Solana ETF proposals from Grayscale, VanEck, 21Shares and Bitwise face an SEC deadline of 10 October. XRP ETFs from firms including WisdomTree, Bitwise, Grayscale and CoinShares await responses between 19 and 24 October. Grayscale’s Dogecoin and Cardano ETF filings are expected to receive final decisions by the end of the month.
Changing Market Cycle
Analysts agree that the current cycle differs significantly from 2021. While signs of altcoin strength are visible, particularly in Ethereum, growth remains highly selective and closely tied to institutional participation.
With IPO-ready firms preparing to enter public markets and billions in potential capital waiting, Wall Street’s focus could steer the market towards more mature crypto players rather than speculative tokens.
