Cryptocurrency exchange Kraken’s choice to go ahead with a confidential IPO, just days after securing an $800 million raise, shows an exchange trying to capitalize on market momentum as US regulators move toward clearer crypto regulations.
The timing surprised some market observers, as the company’s recent capital raising involved a strong private market valuation and provided a significant runway.
But the IPO fits a broader trend playing out across crypto, according to veteran securities attorney Megan Penick of Dorsey & Whitney.
“As digital asset treasury companies increasingly seek to access the US capital markets … crypto exchanges such as Kraken are also looking to access greater liquidity through initial public offerings,” she said in an email to CoinDesk.
For Kraken, liquidity is only part of the equation. As the industry emerges from a multi-year regulatory fog, exchanges are trying to position themselves for the next growth turnaround.
“Regulators are moving to bring greater clarity to crypto regulation with a two-pronged proposal aimed at bringing BTC, ETH and crypto exchanges clearly within the CFTC’s regulatory purview,” Penick said.
If this shift materializes, a US-listed Kraken will be able to operate with a degree of regulatory certainty previously unavailable, increasing appetite among institutional investors.
Penick added that Kraken could complete its offering in “six months or so,” assuming a typical review cycle and updates to financials. But the agency only recently reopened after being closed for nearly six weeks, creating a backlog of notification files. This means that Kraken’s debut could extend into 2026.
The timing of Kraken’s IPO is also exciting. Crypto exchanges Bullish (whose parent Bullish Global also owns CoinDesk) and Gemini both went public in recent moves with shares popping open. But now the crypto market is in a corrective phase with bitcoin dropped from a record $126,000 to $91,000 in just over a month.
The filing is a sign that Kraken is confident that the market will recover, but also that the US crypto market is maturing to a point where it is safer to jump on board to avoid missing the boat.
