Crypto asset manager Grayscale Investments publicly filed for an initial public offering on Thursday, revealing a nearly 20% decline in revenue for the first nine months of 2025. The firm, a subsidiary of Digital Currency Group, intends to list its Class A common stock on the New York Stock Exchange under the ticker symbol “GRAY”.
The S-1 registration statement filed with the U.S. Securities and Exchange Commission (SEC) shows Grayscale generated $318.7 million in revenue through September 30, 2025, down from $397.9 million during the same period in 2024. Net income also fell to $203.3 million from $223.7 million year-over-year. The filing attributes the revenue dip to lower management fees amid intensifying competition and significant investor withdrawals from its flagship funds.
Financial Performance and Market Pressures
Despite the recent downturn, Grayscale remains a titan in the digital asset industry, with approximately $35 billion in assets under management (AUM) as of September 30, 2025. However, the company faces considerable headwinds.
Its largest fund, the Grayscale Bitcoin Trust (GBTC), has experienced substantial outflows since its conversion to an exchange-traded fund (ETF). The fund, which charges a relatively high 1.5% fee, saw over $21 billion in outflows last year and an additional $3 billion so far in 2025. This trend reflects a broader shift as investors gravitate toward lower-cost Bitcoin ETFs from competitors like BlackRock.
The IPO filing follows a confidential submission made in July and comes after a landmark legal victory for Grayscale in August 2023. A federal court ruled that the SEC’s denial of Grayscale’s application to convert GBTC into a spot ETF was “arbitrary and capricious,” a decision that helped pave the way for the approval of spot Bitcoin ETFs in the United States.
IPO Details and Market Outlook
Grayscale has not yet determined the number of shares to be offered or the price range for the proposed offering. The IPO is being led by a team of prominent underwriters, including Morgan Stanley, BofA Securities, Jefferies, and Cantor. The offering will utilize a dual-class share structure, allowing parent company Digital Currency Group to retain significant voting control.
Market analysts project a valuation for Grayscale between $30 billion and $33 billion. The public offering is expected to occur in late 2025 or early 2026, contingent on market conditions and final regulatory clearance from the SEC. The move is part of a larger trend of crypto-related companies, such as Circle and Gemini, seeking to enter public markets.
