Grayscale's IPO Filing Shows 20% Revenue Drop—But Analysts Say The Crypto Asset Manager's Timing Could Still Be Perfect

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The crypto industry’s IPO window might be narrowing, and Grayscale Investments appears aware of the timing. The Stamford, Connecticut-based asset manager announced on Nov. 13 that its revenue has declined by 20%. Despite the drop, market watchers say the company’s decision to pursue a public listing now—potentially ahead of political headwinds—could prove strategically smart.

Grayscale reported net income of $203.3 million on revenue of $318.7 million for the nine months ended Sept. 30, down from $223.7 million in net income on $397.9 million in revenue during the same period last year. Despite the decline, the timing of the filing points to strategic consideration of the political calendar.

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“2026 midterm elections are on the horizon, which could potentially change the landscape for crypto,” Renaissance Capital Senior Strategist Matt Kennedy told Reuters. “I expect many crypto companies like Grayscale and BitGo want to go public ahead of that uncertainty.”

The Shutdown Is Over—Now the IPO Race Begins

The filing comes as the United States' longest government shutdown on record has finally ended, letting the Securities and Exchange Commission return to full operations after weeks of minimal staffing. Analysts now anticipate a revival in the IPO market, creating a narrow window for companies that have been waiting to go public, according to Reuters.

Grayscale is among several crypto companies taking advantage of a regulatory climate shaped under the Trump administration. Stablecoin leader Circle (NYSE:CRCL) and crypto exchange Gemini (NASDAQ:GEMI) also went public this year.

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Founded in 2013, Grayscale manages approximately $35 billion in assets and has established itself as a prominent player in the crypto landscape. The company’s landmark court victory against the SEC in 2023 helped pave the way for approval of spot bitcoin ETFs last year—a regulatory milestone that reshaped the entire industry.

Morgan Stanley (NYSE:MS), BofA Securities, Jefferies (NYSE:JEF) and Cantor Fitzgerald are serving as lead-managing bookrunners for the offering. Grayscale will list on the New York Stock Exchange under the symbol “GRAY.”

The Thanksgiving Timing Problem

While the shutdown’s end creates opportunity, the calendar presents challenges. With Thanksgiving approaching, market activity typically slows to a crawl.

“With Thanksgiving coming up in two weeks, realistically, we don’t see IPOs starting back up until early December, with some of the activity coming in early January,” Edward Best, co-head of capital markets group at Willkie Farr & Gallagher, told Reuters.

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Best added that most companies will need to file amendments with Q3 financials, which could either delay filings or slow down SEC review processes.

The revenue decline Grayscale disclosed reflects broader challenges in the crypto asset management space, where fee compression and market volatility have pressured margins. However, the company’s strong brand recognition and regulatory wins position it differently from many competitors.

For investors watching the crypto IPO wave, Grayscale’s filing represents both a barometer of industry health and a test of whether established crypto firms can maintain investor interest even as growth rates moderate. The company’s decision to move forward despite softer financials suggests confidence that the current window—politically and regulatorily—may not stay open forever.

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