Cryptocurrency exchange Kraken’s choice to move forward with a secret IPO filing just days after securing $800 million in funding shows the exchange is looking to capitalize on market momentum as U.S. regulators seek clearer crypto rules.
The timing surprised some market observers, as the company’s recent capital increase implied a strong valuation in the private market and gave it substantial runway.
But Megan Pennick, an experienced securities attorney at Dorsey & Whitney, says the IPO move fits into broader trends that are unfolding across cryptocurrencies.
“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,” he said in an email to CoinDesk.
For Kraken, liquidity is only part of the equation. As the industry emerges from years of regulatory fog, exchanges are poised for the next inflection point in growth.
“Regulators are moving toward greater clarity in crypto regulation, with a bipartisan proposal aimed at bringing BTC, ETH, and crypto exchanges clearly within the CFTC’s regulatory purview,” Pennick said.
If this change were to materialize, U.S.-listed Kraken could operate with a degree of regulatory certainty not previously possible, increasing institutional investors’ appetite for investment.
Penick added that assuming normal review cycles and financial updates, Kraken could complete service delivery in “about six months.” But the agency only recently reopened after being closed for nearly six weeks, creating a backlog of review applications. That means Kraken’s debut could take until 2026.
The timing of Kraken’s IPO is also interesting. Cryptocurrency exchanges Bullish (whose parent company Bullish Global also owns CoinDesk) and Gemini have both gone public in recent moves, sending their shares soaring. However, the cryptocurrency market is currently entering a correction phase for Bitcoin. BTC$92,123.27 It has fallen from an all-time high of $126,000 to $91,000 in just over a month.
The filing is both a sign that Kraken believes the market will recover and a sign that the U.S. cryptocurrency market is maturing to a point where it’s safe to jump on board.
