Cryptocurrency exchange Kraken’s choice to move forward with a confidential IPO filing, just days after securing an $800 million raise, shows an exchange trying to capitalize on market dynamics as U.S. regulators move toward clearer crypto rules.
This timing surprised some market observers, as the company’s recent capital raise implied a strong private market valuation and provided a substantial landing strip.
But the IPO move is part of a broader trend playing out in the crypto space, according to veteran securities attorney Megan Penick of Dorsey & Whitney.
“As digital asset treasury companies increasingly seek access to U.S. capital markets…crypto exchanges, such as Kraken, are also seeking access to 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 years-long regulatory fog, exchanges are trying to position themselves for the next inflection in growth.
“Regulators are working to bring more clarity to crypto regulation, with a bipartisan proposal to clearly place BTC, ETH, and crypto exchanges within the CFTC’s regulatory jurisdiction,” Penick said.
If this change comes to fruition, a US-listed Kraken could operate with a degree of regulatory certainty that was not previously available, thereby stimulating the appetite of institutional investors.
Penick added that Kraken could finalize its offer in “about six months,” assuming a typical review cycle and financial data updates. But the agency only recently reopened after being closed for nearly six weeks, creating a backlog of review files. This means that Kraken’s debut could extend into 2026.
The timing of Kraken’s IPO is also intriguing. Crypto exchanges Bullish (whose parent company Bullish Global also owns CoinDesk) and Gemini have both gone public in recent moves with open shares. But now the crypto market is entering a corrective phase with bitcoin going from a record $126,000 to $91,000 in just over a month.
The filing is a sign that Kraken is confident 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.
