Kraken delayed its multibillion-dollar IPO. So did Consensys, Ledger, and Grayscale. The crypto public listing boom that was supposed to define 2026 has stalled, and according to a top investment banker who helps companies go public, it may not reopen until next year. Here is what happened, what it means for the industry, and why regular investors should actually be glad most of these deals are on hold.
By Carlos Martinez | July 11, 2026
The Hook
At the start of 2026, the crypto industry was riding high. Circle — the company behind USDC, the second-largest stablecoin — had just gone public under the ticker CRCL. Bullish, the parent company of CoinDesk, had also listed as BLSH. The IPO window was open, and a parade of crypto companies were lining up to go public.
Six months later, that window has effectively closed. Christian Lopez, head of blockchain and digital assets at investment bank Cohen & Company Capital Markets, told CoinDesk in an exclusive interview that “the IPO market is a bit slower in the crypto space for obvious reasons.” Those obvious reasons include a brutal market downturn, capital rotating into artificial intelligence, and post-listing performances so disappointing that investors are reluctant to touch new crypto stocks.
The Casualty List
The list of delayed or frozen IPOs reads like a who’s who of the crypto industry:
- Kraken (parent company Payward) — froze its multibillion-dollar IPO plan in March due to difficult market conditions
- Consensys — the company behind MetaMask and key Ethereum infrastructure — delayed its potential IPO until at least fall 2026
- Ledger — one of the biggest crypto hardware wallet makers — put its US IPO plans on hold in May
- Grayscale — the asset manager behind the largest Bitcoin fund — delayed IPO plans in May as the listing boom lost steam
- BitGo — the crypto custodian actually did go public, but its shares fell 13 percent on the second day of trading in January, setting a discouraging precedent
A few companies are still pushing forward. Blockchain.com confidentially filed IPO paperwork with the SEC in May. Crypto trading firm FalconX also filed a draft S-1 registration around the same time. But these are the exceptions, not the rule — and even they are likely waiting for better market conditions before actually pricing their shares.
Why the IPO Window Closed
According to Lopez, the IPO drought is not primarily about regulation — which might surprise people who have followed the crypto industry’s long battles with the SEC and CFTC. “That’s less relevant than before,” Lopez said. “Companies went public before there was regulatory clarity. For companies like Bullish, Circle, or BitGo, it’s more about access to capital than regulation.”
So what is actually driving the freeze? Three forces are converging:
- Capital flight to AI — Retail investors who once fueled crypto markets have largely shifted their attention to artificial intelligence. The so-called Mag 7 tech stocks absorbed enormous amounts of speculative capital that might otherwise have flowed into crypto IPOs. More recently, even AI stocks have pulled back, suggesting capital is rotating yet again — but not back to crypto.
- Macro headwinds — Uncertainty over interest rates has made investors particularly cautious toward high-risk assets. While signals from the Federal Reserve point toward a potentially more deflationary environment, global markets continue to face pressure from central bank actions, including the Bank of Japan’s moves to defend the yen.
- Post-listing disappointment — When BitGo shares dropped 13 percent on their second day of trading, it sent a clear signal to both companies and investors: the aftermarket support simply is not there. “Investors are hesitant to back a stock in an IPO because they’re worried about whether there will be support in the aftermarket,” Lopez explained.
What This Means for Regular Investors
You might think a frozen IPO market is bad news for crypto investors. In reality, it is more complicated than that — and there is a strong argument that this pause is actually healthy.
Here is why: when companies go public during bull markets, they tend to get overvalued. Investors buy at the top, the stock inevitably falls, and regular people lose money. We saw this pattern with Coinbase, which went public near the top of the 2021 cycle at over 300 USD per share before crashing to under 50 USD. If Kraken, Consensys, and the rest had gone public during the first quarter of 2026, many retail investors would have bought in at inflated prices.
By waiting for better conditions, these companies are actually protecting future shareholders. And by the time they do go public, the market will have had time to separate the companies with real business models from the ones that were just riding the hype.
Lopez says the market may not meaningfully reopen for crypto listings until next year, citing expectations that Bitcoin’s market cycle could bottom around October. The broader crypto market tends to follow Bitcoin’s lead, and a recovery in prices would likely restore investor confidence in crypto equities.
The Silver Lining: Traditional Finance Keeps Building
Despite the IPO freeze, the institutional adoption of blockchain technology continues at full speed. Lopez noted that major financial institutions — including Morgan Stanley, Nasdaq, and the New York Stock Exchange — are actively building blockchain-based infrastructure and preparing for tokenized settlement.
Meanwhile, crypto companies are adapting their strategies for the public markets. Kraken, for instance, has been working to diversify beyond crypto trading — a move Lopez believes better positions companies for life as public stocks. “The right thing to do is become more diversified rather than being just a crypto trading business,” he said. The exchange has explored offering tokenized IPO access, turning its platform into infrastructure for the very process it has been waiting to participate in.
Lopez also predicted that many smaller crypto tokens and single-purpose businesses will disappear over the next several years as the industry matures and consolidates. For investors, that means the coming wave of crypto IPOs — whenever it arrives — will look very different from the speculative frenzy of 2021. The survivors will be larger, more diversified, and more like traditional tech companies than casino chips.
The Verdict
The crypto IPO freeze is a reality check, not a death sentence. The companies that survive this downturn and eventually go public will be stronger, better capitalized, and more transparent than they would have been in a hype-driven rush to list. For investors eyeing the next generation of crypto stocks, patience is not just a virtue — it is a strategy.
The IPO window will reopen. It always does. The question is whether you will be ready with a clear head and a discriminating eye when it does — or whether you will get swept up in the next wave of hype. Based on everything Lopez described, we have until at least early 2027 to prepare.
The cryptocurrency market remains highly volatile. This article is for informational purposes only and does not constitute financial advice.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry risk; always do your own research.
BitGo dropped 13% on day 2 and somehow people are surprised nobody wants to touch crypto IPOs lol
coinbase went public at 300 and crashed to 50 though, barry has a point. retail always gets cooked on these
COIN at $340 in 2021 crashing to $50 is the exact playbook BitGo replayed dropping 13% on day 2. Retail IPO buyers in crypto always learn the same expensive lesson.
BitGo dropping 13% on day 2 and everyone acts surprised. thats what happens when you price a crypto custodian like a growth tech stock. retail ate the bag
hard disagree on the framing. AI isnt killing crypto IPOs, the companies just dont have the revenue to justify public valuations right now. blame fundamentals not narrative
BitGo dropping 13% day 2 was the market correctly pricing a custodian like a growth tech stock. wrong valuation framework not wrong company
Everyone focused on the IPO freeze but Morgan Stanley and NYSE are quietly building tokenized settlement infrastructure. That tells you where this is actually going.
Nikolaj is the only one seeing the real story. While everyone mourns the IPO freeze, Morgan Stanley and NYSE are quietly building tokenized settlement infra. The public market doesn’t need crypto — crypto needs the public market.
The Coinbase comparison is the only part that matters. anyone who bought COIN at 340 in 2021 is still down years later. waiting till 2027 to list might actually save Kraken from the same fate
been waiting for Kraken to go public for 2 years now. at this point just give me the 2027 timeline so i can stop checking
Kraken building tokenized IPO infrastructure while waiting to do their own IPO is actually a smart hedge. become the pipeline instead of just another product going through it
Daichi K. kraken building tokenized IPO infra while waiting to IPO themselves is actually clever. become the pipe not just the product flowing through it
Circle proved the window worked in early 2026 and then everyone else fumbled. Kraken had years to file
Christian Lopez saying maybe 2027 is banker speak for dont hold your breath. IPO windows dont reopen on schedule
Lars Eriksson lopez saying maybe 2027 is polite banker speak for this deal is dead. IPO windows dont reopen on a schedule
Circle IPOd at the absolute top and now nobody else can get out. classic IPO timing
The Circle CRCL and Bullish BLSH listings were supposed to open the floodgates. Instead they proved that even successful crypto IPOs can’t sustain momentum. 2027 is the realistic window now.
circle proved public listings can work, then kraken fumbled the bag for 2 years. christian lopez saying 2027 is him politely saying the deal is dead
coinbase went public at 340 and crashed to 50. the IPO playbook for crypto companies is pretty clear and its not pretty. retail always eats the bag
COIN at 340 dropping to 50 is the only IPO comp that matters. kraken waiting till 2027 might actually save retail from the same fate
bramble_fund COIN at 340 dropping to 50 is the only IPO comp that matters. retail got shredded and the same pattern will repeat whenever the window reopens
Grayscale delaying again after the ETF conversion win is telling. if the conversion wasnt enough momentum nothing will be
bullish_reflex_ grayscale had the ETF conversion as a springboard and still couldnt time the IPO. makes you wonder if the crypto IPO thesis even works in this rate environment
Christian Lopez saying maybe 2027 is the cleanest tell. nobody in M&A says maybe next year when the window is actually open
Kraken delaying makes sense, their compliance costs must be insane after the SEC settlement. wait another year and the valuation gets cut in half
^ honestly good. crypto companies going public means answering to shareholders who dont care about decentralization at all