Grayscale, the leading American cryptocurrency asset manager, has filed confidentially to go public in the US, according to a Monday press release.
The company will eventually make its IPO documents public as soon as the U.S. Securities and Exchange Commission (SEC) completes its review of the application.
Companies might choose to file confidentially in order to be able to retain privacy and gain some sort of strategic advantage. For instance, if the IPO ends up being shelved, there will be less reputatioinal damage. Such filings avoid giving competitors early access to their financials or business risks while allowing pricing to shape without additional market pressure and scrutiny.
This has been fruitful for cryptocurrency IPOs, with stablecoin issuer Circle scoring one of the biggest debuts in recent history. Galaxy Digital and eToro also went public this year.
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Cryptocurrency exchanges Gemini and Bullish also confidentially filed to go public earlier this year.
Such firms as Kraken, Consensys, and Chainalysis are also widely expected to have their IPOs in the nearest future.
The IPO boom has been driven by a regulatory thaw in the U.S. that took place following the departure of former SEC head Gary Gensler. Meanwhile, U.S Congress is on track to pass crucial crypto legislation. The stunning success of Circle's IPO is a clear sign that Wall Street's appetite is back, and a lot of companies want to take advantage of this growing momentum.
