Growing crypto adoption and a favorable regulatory outlook have VCs on the hunt for liquidity events.

New figures from DefiLlama show crypto startups raised more than $4.90 billion in the first quarter of this year, up from $3.62 billion in Q4 2024. 

While venture capital funding is still well below its 2021-22 peak, the recent uptick follows a banner 2024 for crypto VC firms. Over the last few weeks, a number of blockchain payment and stablecoin startups have pulled big funding rounds. 

Now that the SEC is set to provide clarity on rules governing digital assets, venture capital funds are on the hunt for liquidity events across the crypto ecosystem. 

This year they could have at least five IPOs to choose from.

Five crypto firms set to go public

Companies in the spotlight include Animoca Brands, Telegram, Ionic Digital, Kraken, and Circle. One is in motion while the rest could all potentially go public in the coming months.

VC funding in the crypto space as of April 2025 | Source: DefiLlama

If they happen, it will mark a decisive turnaround from the funding pall cast by former SEC Chair Gary Gensler, a steadfast crypto-skeptic who triggered a swathe of enforcement actions during his tenure against industry heavyweights like Binance and Coinbase.

As Bitcoin prepares for its next rise and risk-on sentiment returns, VCs – under mounting pressure to start returning capital to limited partners – may see their chance. These five firms have a fair shot at success:

1. Circle

On April 1st, Coinbase-backed stablecoin issuer Circle ended years of speculation and announced it had filed for an initial public offering with the SEC. The prospectus comes after two years of escalating IPO speculation and lays the groundwork for the firm's long-awaited entry into the public markets.

Reportedly aiming for a $5 billion valuation, the company behind the USDC stablecoin has named JPMorgan Chase and CitiGroup as lead underwriters. Circle will list on the New York Stock Exchange and trade under the CRCL symbol.

Since its early beginnings, Circle has marketed its USDC stablecoin as a regulated and transparent digital currency in a bid to gain market share from rival Tether's USDT. In July of 2024 it became the first stablecoin issuer to achieve compliance with the EU's Markets in Crypto-Assets (MiCA) rulebook.

2. Kraken

In June 2024 it was reported that crypto exchange Kraken was seeking to raise more than $100 million in pre-IPO funding, despite being involved in a legal spat with regulators over accusations that the company "unlawfully" facilitated the trading of crypto asset securities and commingled customer funds.

As of late January 2025, the legal battle between Kraken and the SEC was still running. In a major setback for the crypto exchange, on January 24, 2025, a California federal judge dismissed Kraken's defense that crypto transactions conducted on its platform did not fall within the SEC's regulatory purview.

An investor note from Bitwise notes that Kraken has been considering an IPO "since at least 2021.

‘Market conditions have delayed the company's plans but they could be back on the table in 2025.'

3. Telegram

Social media and instant messaging platform Telegram has endeared itself to crypto users by integrating blockchain services and crypto wallets.

Telegram's association with the crypto industry dates back to 2019 when the company launched a public blockchain named Telegram Open Network (TON). Work on the TON blockchain ceased, however, after the SEC sued the company for issuing crypto tokens to investors.

TON is currently being developed open-source by its community, but Telegram hasn't abandoned the network. In February 2024, founder Pavel Durov announced that the company would "use TON "exclusively for our revenue-sharing program."

Durov told the Financial Times that Telegram was exploring an IPO in the future "as a means to democratize access to Telegram's value."

4. Animoca Brands

Animoca Brands is a Hong Kong-based web3 investment firm and gaming developer that aims to go public in 2025. Media reports have said the company has been looking at "crypto-friendly" markets such as Hong Kong and the Middle East to launch a potential IPO.

Animoca Brands was listed on the Australian Securities Exchange (ASX) from 2015 to 2020. It was forced to delist in March 2020 after failing to comply with listing rules, such as maintaining continuous disclosures.

According to a quarterly report, the company's business model comprises digital asset advisory services, web3 applications and platforms, and investment management. Animoca also builds web3 and blockchain applications for institutions such as NEOM and is working on stablecoins and decentralized physical infrastructure networks (DePIN).

5. Ionic Digital

Ionic Digital is a Bitcoin mining company formed in January 2024 from the reorganization of bankrupt crypto lender Celsius Network.

The newly formed company acquired Celsius' Bitcoin mining assets, and its stock was issued to Celsius' creditors as part of the bankruptcy plan. The plan also required Ionic Digital to become a publicly traded company to provide shareholders with liquidity options. The company plans to list on the Nasdaq Stock Exchange.

In a letter to shareholders on January 14, 2025, Ionic Digital's interim CEO Anthony McKiernan reiterated the company's plan to list publicly and said its financial audit is expected to be completed by the second quarter of 2025.

Takeaways

Analysts at crypto asset manager Bitwise say 2025 is shaping up to ‘the year of the crypto IPO,' driven by investor demand, increased retail and institutional adoption, plus a favorable regulatory outlook.

Crypto M&A activity is also on the up. According to a report from Architect Partners, crypto firms inked more than 60 M&A deals valued at more than $2.2 billion in Q1 2025, ​​a record level.

Among them was Kraken’s recent $1.5 billion acquisition of DeFi futures trading platform NinjaTrader – the "biggest crypto deal yet," noted Architect’s report. Ripple announced last week that it had acquired Hidden Road, a prime brokerage, for 1.25 billion. 

Several other crypto firms, such as blockchain-powered financial services company Figure, institutional-focused crypto platform Anchorage Digital, and data analytics company Chainalysis, have also been widely tipped to go public in 2025.