The hype surrounding cryptocurrency companies going public is waning because the markets are still considered insufficiently large for the traditional finance companies (TradFi) that have an increased interest in the industry.
Fewer investors feel as confident as they did last year, according to a report by the influential CfC St. Moritz, Switzerland crypto conference, which recorded the outlook and predictions of 242 respondents at the event.
After a record 2025 in which 11 IPOs raised $14.6 billion, “sentiment points to declining IPO intensity and increasing consolidation risk,” the report said. According to the report, lack of liquidity is seen as the biggest threat.
Out of 242 respondents, 107 believe “TradFi is taking over” crypto, an increase of more than 50% year over year.
However, participants noted an improvement in crypto regulation in the US and UAE. The US jumped from last to second in regulatory favorability within a year, reflecting rising confidence, and the UAE remains the top jurisdiction.
“The CfC St. Moritz report captures the minds of some of the most influential decision makers in digital assets,” said Nicolo Stöhr, CEO of CfC St. Moritz. Moritz. “Their responses point to a clear shift in priorities, from hype to infrastructure, liquidity and regulatory credibility, as well as a rapidly changing view of the US market. This is informed capital, and it reflects where the industry is really headed.”
