Investors Say 2026 IPO Hype Is Fading as TradFi and Liquidity Concerns Rise

Published: 2026-02-04 10:57:22 |

Surveyed attendees at the CfC St. Moritz conference report fading enthusiasm for crypto IPOs in 2026 after a record 2025 (11 IPOs raising $14.6bn). The CfC survey of 242 participants found reduced appetite for new crypto listings and rising consolidation risk as traditional financial firms increase involvement — 107 respondents said “TradFi is taking over,” a >50% year‑on‑year rise. Liquidity shortages and the small market size were identified as the top risks. Respondents also flagged improving regulatory environments: the US climbed from last to second in regulatory favorability, while the UAE remained the most favored jurisdiction. CfC CEO Nicolo Stöhr summed up the shift from IPO hype to priorities around infrastructure, liquidity and regulatory credibility. For traders: expect lower primary issuance, heightened M&A/consolidation activity, potential downward pressure on valuations for smaller crypto firms, and increased attention to jurisdictions and on‑chain liquidity metrics.

Bearish

The combined reports point to lower primary issuance and growing consolidation as TradFi firms enter the space and liquidity shortages persist. Short term, reduced IPO appetite and tighter liquidity tend to lower sentiment and can pressure valuations for smaller crypto firms and tokens tied to those platforms — a bearish signal for prices linked to the affected projects. Increased M&A activity can concentrate assets but often reduces speculative flows that drive pump-like price moves. In the medium-to-long term, improved regulatory clarity (US and UAE) could stabilise markets and attract institutional capital, which is neutral-to-positive structurally; however, that process is gradual and may not offset immediate liquidity-driven selling or valuation compression. Overall impact on trading: expect heightened volatility around firm-specific news, weaker performance for illiquid/small-cap tokens, and selective interest in projects with clear regulatory paths and deep on‑chain liquidity.