The crypto ecosystem intensifies its assault on the markets

A prominent example of this trend is Coincheck, one of the main cryptocurrency exchange platforms in Japan, which debuted on the Nasdaq on December 11, 2024. It thus became the second cryptocurrency platform to be listed on this American exchange, after of Coinbase, which began trading on April 14, 2021. This IPO was carried out with a transaction under the SPAC mechanism, valuing the company at around $1.3 billion.

These initiatives reflect a growing institutionalization of the crypto ecosystem, where companies seek not only to legitimize themselves before the public and investors, but also to access financial resources that allow them to compete and grow in a constantly evolving market. Listing on top-level stock exchanges offers these companies greater visibility and credibility, facilitating their expansion.

«That the ‘exchanges’ are listed on the stock market gives the sector much greater transparency and market security. In this way, investors will be able to access the company’s accounts and review aspects that may concern them and that they fear will impact their investments within that platform. In turn, this increase in transparency can facilitate investment in cryptocurrencies for investors who are still reluctant to have this market as an alternative,” says Javier Cabrera, market analyst. This expert also comments that it is likely that new IPOs will continue to occur in the future, especially in the context of the current crypto market rally and given the expectation that these companies will present positive results in the coming quarters.

The price of Bitcoin is at historical highs, standing around 93,000 euros, which represents an increase of 130% compared to the approximately 40,000 euros recorded at the beginning of the year. «On the horizon of 2025, it is reasonable to expect that some companies in the digital asset ecosystem will try to make the leap to the stock market. In this sense, investors are already observing the growing maturity in the industry, with clearer regulations and the categorization of digital assets,” says Joaquim Matinero, professor of the master’s degree in blockchain and investment in digital assets at the IEB.

“As the sector continues to mature we may see more companies go public and the EU should be competitive in this sector,” says Pablo Casadío, chief financial officer of Bit2Me. In Spain, the environment is more cautious. Although there are innovative projects in the cryptoasset sector, the consolidation of the European regulatory framework could delay IPOs, says Matinero. “However, initiatives such as the European regulatory ‘sandbox’ and the recent implementation of clearer regulations for crypto assets could pave the way, although it is likely that there will still be a little more time before we see large IPOs in Spanish territory.” , he adds.

Before going public, crypto companies in Spain must confront a complex regulatory landscape. According to Cristina Carrascosa, partner of the ATH 21 firm, in addition to complying with traditional standards for listing, these firms must obtain specific authorizations if they offer services such as custody of cryptoassets or intermediation in securities markets. Both the CNMV and the Bank of Spain supervise these activities, requiring registration for cryptoasset service providers (CASP) and compliance with regulations against money laundering (AML) and the financing of terrorism (CFT).

Decisive challenge

Carrascosa points out that one of the main challenges for these companies is the valuation of their business models, due to the general lack of knowledge about cryptoassets and the difficulty of valuing them in unregulated markets. In addition, they must comply with European regulations such as Regulation 2023/1114which will come into force in 2025, as well as other regulations, including the GDPR, AML and KYC rules, and Corporate Social Responsibility (CSR) obligations, essential to comply with the requirements of the CNMV.

Matinero highlights that digital asset companies face key challenges when considering going public. Among them, regulatory uncertainty generates distrust among investors, while the volatility of cryptoassets makes it difficult to achieve the financial stability required by the markets. Likewise, public perception continues to associate these companies with high risks, which is an additional obstacle to attracting traditional capital.

In this context, Lucas Acebedo, senior manager of credit risk and compliance at NTT DATA, highlights the need for regulations to incorporate regulatory technology (RegTech) tools to keep pace with innovation. Frameworks like MiCA legitimize the sector by requiring transparency and governance, transforming compliance into added value for investors. However, he warns that excess regulation can make startups’ access to the market more expensive. Acebedo also points out additional technical and financial challenges, such as the high costs of adapting hybrid systems that combine blockchain with traditional accounting and regulatory requirements. Furthermore, the volatility of assets such as Bitcoin or Ether can distort business valuations.

Acebedo points out that the great challenge is stricter regulation that requires “transparency, audits and ‘traditional’ governance”, something complex for companies structured as DAOs (Decentralized Autonomous Organization). In addition, he states “they are exposed to sudden changes in the price of cryptoassets such as Bitcoin or Ether, which can strongly impact their valuation, although it does not correspond to the company’s fundamentals.”

Cryptocurrency exchanges are the main candidates to seek listing in the markets, according to Matinero, thanks to their solid infrastructure and stable income streams. This increasingly regulated profile is attractive to institutional investors, he points out. Cryptocurrency mining also has potential, although it faces challenges linked to sustainability and volatility. Additionally, blockchain technology companies, focused on interoperability, smart contracts and decentralized applications, could attract public investment, Matinero adds.

According to Cabrera, the main challenge for crypto companies is volatility, which significantly affects their results. This leads investors to perceive them as cyclical companies, less attractive in the long term. However, they offer an interesting way to gain exposure to the crypto market without investing directly in it. Cabrera adds that, although the current bull market is creating appetite for these companies, it is crucial to remain cautious with the multiples paid.