Kraken Submits Confidential IPO Application, Aiming for $20 Billion Valuation

Kraken's IPO Filing: Kraken has confidentially filed for a U.S. IPO, following an $800 million funding round that increased its valuation to $20 billion, as it aims to go public before the 2026 midterms.

Regulatory Environment: The filing comes after the SEC dropped its lawsuit against Kraken's staking services, prompting a rush among crypto firms to enter U.S. equity markets amid a more favorable regulatory climate.

Market Dynamics: Analysts predict that as institutional interest in equity-based crypto exposure grows, public markets may become the preferred avenue for crypto investments, despite a decline in liquidity for underlying tokens.

Future Implications: The success of Kraken's IPO and other upcoming listings will test the ability of public markets to absorb large-scale crypto infrastructure offerings in a risk-averse environment, potentially reshaping investor strategies.