Cryptocurrency exchange Kraken’s decision to move forward with a confidential IPO filing, just days after securing an $800 million raise, shows an exchange attempting to capitalize on market momentum as U.S. regulators move toward clearer crypto rules.
The timing surprised some market observers, as the company’s recent capital raise implied a strong valuation in the private market and provided substantial runway.
But the IPO move fits into a broader trend developing in cryptocurrencies, according to experienced securities attorney Megan Penick of Dorsey & Whitney.
“As digital asset treasury companies increasingly seek access to the US capital markets…crypto exchanges, such as Kraken, are also seeking to access greater liquidity through initial public offerings,” he 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 inflection of growth.
“Regulators are taking steps to bring greater clarity to cryptocurrency regulation, with a bipartisan proposal that aims to bring BTC, ETH, and cryptocurrency exchanges clearly within the CFTC’s regulatory purview,” Penick said.
If that change materializes, a US-listed Kraken could operate with a degree of regulatory certainty not previously available, boosting appetite among institutional investors.
Penick added that Kraken could complete its offering in “approximately six months,” assuming a typical review cycle and financial updates. But the agency recently reopened its doors after being closed for nearly six weeks, leading to a backlog of review submissions. That means Kraken’s debut may 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 went public in recent moves with shares opening up. But now, the cryptocurrency market is embarking on a corrective phase with bitcoin. going from all-time highs of $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.
