The cryptocurrency crash dragged down the short-term prospects of the US stock IPO market.

The return rate of new IPOs in the United States this quarter has significantly shrunk, and the recent sharp decline in cryptocurrency has made it one of the hardest hit sectors for IPOs, setting a higher threshold for companies like Grayscale Investments and BitGo Holdings to go public in the short term. Data shows that excluding closed-end funds and special purpose acquisition companies, the average drop in fundraising amounts for U.S. IPO stocks exceeding $50 million this quarter is 5.3%, while the S&P 500 index rose by 0.9% during the same period. Among them, the five cryptocurrency companies that went public this year saw an average decline of 31% this quarter. The crypto market crash that started in early October has wiped out more than $1 trillion in total market value of digital assets, and even prior to this, the market feedback for cryptocurrency IPOs was mixed. Specifically, the cryptocurrency exchange Gemini Space Station (GEMI.US), which went public at $28 per share in September, saw its stock price drop by 14% in the third quarter. EToro Group (ETOR.US) performed even worse, dropping over 20% from its May listing to September 30. Companies that were performing well before the crash were also not spared. Bullish (BLSH.US), an institutional crypto exchange led by Tom Farley that went public in August, has seen its stock price fall by 38% since early October. Stablecoin issuer Circle (CRCL.US), which went public in June, was well-received by retail investors, but its stock price was halved during the same period. However, Bullish and blockchain-based credit company Figure Technology Solutions (FIGR.US) currently have stock prices higher than their IPO levels. This performance raises a question: what kind of market reaction will the cryptocurrency ETF provider Grayscale, which publicly submitted its IPO application on November 13, and the cryptocurrency infrastructure company BitGo, which submitted its application on September 19, receive in the current environment? In fact, this poses a challenge for new companies in any industry. Founding partner of IPOX Schuster, Josef Schuster, said, "Considering that investors have suffered substantial losses, cryptocurrency may be the least favored industry." He stated that these companies are not likely to be forced to delay their December listings, but they may have to lower their pricing expectations. Investment banks still hope to complete more IPOs in the short window between Thanksgiving and Christmas, but some companies have already chosen to withdraw. CEO of Once Upon A Farm PBC, John Foraker, has decided to postpone the IPO of this children's food company until 2026, citing disruptions caused by the U.S. government shutdown. The short-term health of the IPO market - including the prospects for more companies related to cryptocurrency - may depend on whether the market will see a so-called "Santa Claus rally." David Erickson, a professor of business at Columbia Business School, said, "If investors are already in trouble with their existing portfolios, they won't be excited about anything new unless it's very unique." However, all signs point to cryptocurrency being a significant theme for IPOs in 2026. Kraken, a crypto trading platform, revealed last week that it had secretly submitted an IPO application. Kevin Moss, Managing Director and Portfolio Manager of Private Shares Fund, which holds shares in 80 private or recently public growth companies, believes that many companies have been queuing up for IPOs for years. He thinks that next year there may be a "spring-loaded" wave of listings covering multiple industries, and that "unless something unimaginable happens, many companies are planning to go public."