Grayscale Pauses IPO Plan, Earliest Restart May Come in Fourth Quarter
Summary
- Global asset manager Grayscale has paused its IPO plans as the crypto market remains in a bear market.
- CoinDesk, citing sources, said Grayscale's IPO process is unlikely to resume before the fourth quarter of this year.
- Crypto companies including Kraken and Ledger have also halted IPO work as market conditions worsen, trading volumes decline, and newly listed firms post weak performance.
Forecast Trend Report by Period
Grayscale has paused its initial public offering plans as weakness in the cryptocurrency market persists.
CoinDesk reported on May 28 that Grayscale recently halted work on its IPO. Citing people familiar with the matter, the crypto news outlet said the process is not expected to resume before the fourth quarter at the earliest.
Grayscale is one of the world's largest asset managers. It runs the Grayscale Bitcoin Trust, or GBTC, a spot Bitcoin exchange-traded fund.
The company confidentially filed for an IPO with the U.S. Securities and Exchange Commission in November last year. Grayscale told CoinDesk it could not comment on the matter because of the SEC's confidentiality period.
The delay reflects the impact of the crypto market downturn. Other crypto firms, including Kraken and Ledger, have also suspended IPO preparations. CoinDesk said deteriorating market conditions, lower trading volumes and weak performance by newly listed companies such as BitGo have damped enthusiasm for crypto IPOs.
