The hype around cryptocurrency company IPOs is subsiding because the markets are still seen as not being big enough for traditional financial companies (TradFi) that are becoming increasingly interested in the industry.
Fewer investors feel as confident as they did last year, according to a report from influential cryptocurrency conference CfC St. Moritz, Switzerland, which recorded the perspectives and predictions of 242 respondents at the event.
After a record year in 2025 in which 11 IPOs raised $14.6 billion, “sentiment points to a decline in IPO intensity and an increase in consolidation risk,” according to the report. According to the report, liquidity shortage is considered the biggest threat.
Of 242 respondents, 107 believe “TradFi is taking over” cryptocurrencies, an increase of more than 50% year over year.
However, attendees noted an improvement in cryptocurrency regulation in the US and the UAE. The United States jumped from last to second place in regulatory favorability in a year, reflecting growing confidence, and the United Arab Emirates remains the top jurisdiction.
“The CfC St. Moritz Report captures the thinking of some of the most influential decision makers in digital assets,” said Nicolo Stöhr, CEO of CfC St. 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 reflects where the industry is really headed.”
