Aug 14 (Reuters) - After years of sitting on the

sidelines, U.S. crypto companies are lining up to go public,

buoyed by friendly policies under President Donald Trump's

second administration that have pushed the value of global

cryptocurrencies to a record $4.2 trillion.

Bullish, a cryptocurrency exchange operator that

counts billionaire Peter Thiel among its backers, was the latest

to tap U.S. public markets on Wednesday, raising over $1.1

billion.

Analysts point to rising mainstream adoption and

deep-pocketed corporate backers as forces reshaping the sector's

fundraising landscape and boosting demand for new crypto stocks.

INDUSTRY BELLWETHER

Circle went public in June in a blowout NYSE debut,

with shares more than doubling at the open to value the

stablecoin issuer at about $18 billion. Stablecoins are a type

of cryptocurrency pegged to a fiat currency, usually the dollar.

"More than anything, Circle's trading has really been the

biggest green light for the industry," said Matt Kennedy, senior

strategist at IPO-focused research and ETFs provider Renaissance

Capital.

Days after that IPO, the U.S. Senate passed the landmark

Genius Act establishing a regulatory framework for stablecoins,

fueling a rally in the stock.

Circle's shares closed the previous session at $153.16,

versus its IPO price of $31 apiece. The company is now worth

around $35 billion, according to LSEG-compiled data.

"Positive trading and a friendly regulator make for a

powerful combo," Kennedy added.

CRYPTO MARKET MOMENTUM

The growing roster of IPO candidates underscores how far the

sector has come since the 2022 collapse of crypto exchange FTX

triggered a crypto winter, crushing valuations and investor

confidence.

After years of write-downs and retrenchment, the rebound in

prices and sentiment is driving companies to tap public markets.

"Private investors are likely seeking liquidity. Many VCs

and private equity firms have held these positions for years,"

said Kat Liu, vice president at IPO research firm IPOX. "These

are no longer purely speculative businesses."

The passage of the Genius Act, coupled with Circle's

blockbuster market debut, has spurred a wave of other crypto

firms to press ahead with listing plans. BitGo, Grayscale and

Gemini are among those that have already submitted confidential

filings to list their shares.

Analysts also view crypto exchange Kraken as a potential IPO

candidate in the sector.

SPAC DEALS

While a handful of crypto companies have gone public via

IPOs, many are opting to merge with special purpose acquisition

companies, which typically undergo less scrutiny.

A SPAC is a publicly-listed shell company with a pool of

capital. A private company can list its shares via a merger with

a SPAC.

The SPAC route has mostly been popular among smaller

startups aiming to emulate Michael Saylor's Strategy,

which pioneered the "crypto holding company" model.

By holding tokens such as bitcoin and ether on their balance

sheets, these companies position themselves as an indirect

vehicle for investors to gain crypto exposure.

Bitcoin, the world's largest cryptocurrency, is

forecast to continue climbing and end the year at $200,000.

Standard Chartered expects ether, the second-largest, to

finish 2025 at $7,500. Bitcoin closed at $120,181.98 and ether

at $4619.73 on Tuesday.

"These treasury strategy trades are going to continue for a

while. And as long as they trade at a premium, you're going to

see people raise money," said Joe Nardini, head of investment

banking at B. Riley Securities.

US IPO REBOUND

The broader U.S. IPO market has also steadily recovered this

year, after stalling briefly in April due to uncertainty created

by Trump's sweeping tariffs.

There have been 216 IPOs on U.S. exchanges so far this year,

the most since 2021, raising a total of $39.83 billion, compared

with 118 offerings in the same period a year ago, according to

Dealogic data.

Bankers expect a strong fall IPO window, with high-profile

startups such as buy now, pay later lender Klarna and software

firm Genesys set to hit the market.

Firefly Aerospace's ( FLY ) soaring space-tech debut

alongside Chime's and Figma's ( FIG ) first-day surges

have injected fresh momentum into a market hungry for standout

new offerings.

Still, bankers warn the IPO market remains highly sensitive

to shifts in sentiment and broader volatility.