Web3 IPOs Gain Momentum as Gemini Oversubscription Hits 20X and Figure Surges 24% on Debut

Web3-focused initial public offerings are drawing strong demand from global investors, signaling growing appetite for publicly listed digital asset firms. Gemini’s highly anticipated IPO was reported to be oversubscribed by more than 20 times, while Figure’s market debut surged 24% in early trading. The dual developments underscore both institutional and retail enthusiasm for regulated equity exposure to blockchain-native companies, even against a backdrop of tighter macroeconomic conditions.

Market Reaction: Strong Demand Meets Market Volatility

Gemini’s oversubscription indicates pent-up demand for exposure to crypto exchanges in regulated equity markets. Investors subscribed heavily despite volatile digital asset prices, with Bitcoin hovering near $57,000 and Ethereum trading flat around $2,300. Figure, a blockchain lending and asset tokenization platform, priced its IPO at $12 per share and opened trading at $14.90 before settling near $14.30, representing a first-day gain of roughly 24%.

The strong performance comes as broader equity markets remain cautious, with the Nasdaq Composite down 0.8% week-to-date. Analysts view the divergence as evidence that investors are selectively allocating to Web3 companies with tangible business models, even in risk-off equity environments.

Regulatory and Structural Considerations

The success of Gemini and Figure’s offerings also reflects a shift in regulatory sentiment. While U.S. agencies continue to scrutinize crypto trading platforms, the IPO pathway offers a transparent, disclosure-heavy alternative that resonates with institutions seeking compliance-ready exposure. Gemini’s filing highlighted its adherence to New York’s stringent virtual currency regulations, while Figure emphasized its partnerships with regulated financial institutions.

This shift aligns with a broader global trend. In Europe and Asia, exchanges and fintech firms pursuing listings are increasingly positioning themselves as bridges between decentralized finance and traditional capital markets. The regulatory clarity provided by IPO filings is seen as a buffer against enforcement uncertainty, particularly in the U.S. market.

Investor Sentiment and Strategic Positioning

Investor psychology around Web3 IPOs has shifted from speculative enthusiasm toward a more strategic allocation mindset. Oversubscription levels suggest that institutional desks are using these offerings to gain indirect exposure to blockchain adoption without the volatility of tokens. For retail investors, IPO access provides a regulated entry point into crypto-linked equities, bypassing the complexity of wallets, custody, and compliance.

Capital markets data showed participation from both hedge funds and long-only asset managers, with allocations heavily skewed toward institutions. Analysts noted that demand multiples in Gemini’s offering echo patterns last seen in fintech IPOs during 2021, albeit with greater focus on compliance frameworks and sustainable revenue models.

Looking Ahead: Sustainability of Web3 IPO Momentum

The strong demand for Gemini and Figure highlights investor confidence, but questions remain about the sustainability of this trend. Rising interest rates, elevated bond yields, and ongoing regulatory scrutiny could temper enthusiasm in coming quarters. For now, however, the oversubscription and first-day surge signal that appetite for regulated, equity-based exposure to blockchain remains strong. Investors will be watching closely to see whether other Web3 firms follow suit, potentially setting the stage for a broader wave of digital asset IPOs heading into 2025.