According to a ChainCatcher report citing Bloomberg, the average return of U.S. listed companies from their IPO price to the end of 2025 was 13.9%, lower than the 16% gain of the S&P 500 index. Poor performance by crypto and AI companies was the main reason. Stablecoin issuer Circle performed relatively well, surging 170% on its IPO day, but then fell nearly 70% from its high of $263 to $84.80. Gemini performed poorly, plunging 64.5% from its $28 IPO price to $9.92. Bullish dropped from a high of $68 to $37.87. Mid-sized IPOs (between $500 million and $1 billion) only gained an average of 5.6%, significantly lower than large IPOs (over $1 billion), which rose by 20% on average. The head of IPOs at PwC in the U.S. stated that the market has returned to being driven by fundamentals, with investors becoming more selective and the bar for early-stage tech companies significantly raised.
2025 U.S. IPO Market Underperforms S&P 500, Crypto and AI Firms Drag Performance
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Summary
The 2025 U.S. IPO market underperformed the S&P 500, with an average return of 13.9% compared to 16%. Crypto and AI companies weighed down overall performance, with Circle surging 170% on its IPO day but then dropping nearly 70% to $84.80. Gemini and Bullish also experienced sharp declines. Mid-sized IPOs gained only 5.6%, while large IPOs rose by 20%. The head of PwC's U.S. IPO practice noted that investors are becoming more selective, raising the bar for early-stage technology companies. With weak IPO performance and shifting cryptocurrency price trends, altcoins to watch may offer better returns.
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