The debasement trade that drove strong demand for bitcoin and gold during recent geopolitical tensions is beginning to lose momentum, according to JPMorgan analysts led by Nikolaos Panigirtzoglou. In a report on Thursday, the bank argued investors have started pulling capital from both bitcoin and gold exchange-traded funds (ETFs) at the same time as institutions reduced exposure in futures markets tied to both assets. Bitcoin ETFs have seen significant outflows over the past two weeks, according to data from Farside Investors, in line with gold ETFs, while positions in CME bitcoin and gold futures have weakened over the same period. Panigirtzoglou argued that the move does not appear to reflect investors rotating from bitcoin into gold, but rather that both assets are seeing softer demand at the same time. "Bitcoin had been the main manifestation of the debasement trade since the start of the Iran conflict," the report said, as the debasement trade refers to investor positioning in assets viewed as stores of value during periods of inflation fears or currency weakness.
The crypto IPO boom has officially ended as capital has migrated from cryptocurrency and gold to AI and memory stocks, signaling a fundamental shift in momentum-driven market cycles. According to recent market analysis, this rotation represents a clear departure from the speculative interest that previously fueled crypto and precious metals investments. Bitcoin surged significantly before peaking in late 2025, followed by gold's rally driven by debasement concerns, but the current momentum has shifted decisively toward semiconductor and memory sectors. Companies like Micron Technology have seen exponential growth, capturing investor attention as the new dominant momentum trade. The latest developments show TON briefly rallying to $2.1165 on increased volume before heavy selling erased gains, pulling TON back to key support levels around $2.02, highlighting continued volatility in crypto markets despite broader capital rotation.
Grayscale Investments, the world's largest crypto asset manager, has delayed its long-awaited IPO amid cooling market enthusiasm, following peers like Kraken and Consensys. According to reports, this shift highlights tightening conditions for crypto listings in 2026 despite earlier optimism. The delays mark a significant slowdown after 2025's successful crypto IPO wave, including Circle's debut. Kraken paused preparations in March 2026 after a November 2025 confidential filing, pushing potential listing to late 2026 or 2027. The exchange cited weak market conditions despite targeting a multibillion-dollar valuation, while Consensys delayed its plans to at least fall 2026, and Ledger shelved explorations entirely. TON's price action points to fading buyer interest, with initial strong trading activity giving way to a sharp decline in participation, reflecting the broader market sentiment shift away from crypto investments.
Grayscale confidentially filed its S-1 in July 2025 and publicly disclosed it in November, targeting a NYSE listing under ticker GRAY. The filing revealed $318.7 million in revenue for the first nine months of 2025, down 20% year-over-year, with net income at $203.3 million. Assets under management stood around $35 billion, driven by flagship products like GBTC and ETHE. As of late May 2026, no IPO has launched as the company holds off due to softer investor demand, Bitcoin volatility, and reduced trading volumes that pressure fee-based revenues. Altcoin funding rates, including for TON, have turned positive, indicating renewed confidence among traders, but overall market participation remains muted, reflecting the broader capital rotation away from crypto markets.
Potential high-profile IPOs from firms like SpaceX, OpenAI, and Anthropic may draw further capital, potentially leaving cryptocurrency sidelined for an extended period. Looking ahead, the market has experienced a distinct rotation of capital as speculative interest moves away from traditional crypto and precious metals toward emerging technology sectors. Bitcoin's correlation with firm revenues remains a key factor affecting crypto IPO prospects, with pullbacks in crypto prices and ETF outflows continuing to dampen appetite for high-growth listings. The current shift toward AI and memory stocks reflects investor preference for companies with clearer growth trajectories and operational resilience, as evidenced by TON's integration of tokenized US stocks and digital collectibles and the launch of Confidential Compute Open Network (COCOON) for AI computing power rentals. JPMorgan's report suggests the recent pullback may reflect growing expectations that tensions between the United States and Iran could ease, reducing the need for inflation and geopolitical hedges that had supported bitcoin and gold.
