A trader walks past on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., August 14, 2025. REUTERS/Brendan McDermid

By Arasu Kannagi Basil

(Reuters) -Grayscale reported a 20% drop in revenue in the first nine months of 2025, the crypto-focused asset manager disclosed in its U.S. initial public offering paperwork on Thursday, as analysts expect the IPO market to restart.

With America's longest-ever government shutdown ending, the IPO market is expected to regain momentum after the Securities and Exchange Commission operated with skeletal staffing during the shutdown.

Stamford, Connecticut-based Grayscale reported a net income of $203.3 million on revenue of $318.7 million for the nine months ended September 30, compared with net income of $223.7 million on revenue of $397.9 million a year earlier.

"2026 midterm elections are on the horizon, which could potentially change the landscape for crypto. I expect many crypto companies like Grayscale and BitGo want to go public ahead of that uncertainty," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.

Several high-profile crypto firms, including stablecoin giant Circle and Winklevoss twins' crypto exchange Gemini, have gone public this year, supported by a crypto-friendly Trump administration.

"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," said Edward Best, co-head of capital markets group at Willkie Farr & Gallagher.

"You also have most companies having to file an amendment with 3Q2025 financials, which may either delay their filings or slow down the SEC review a bit."

Founded in 2013, Grayscale manages about $35 billion in assets and is a prominent player in the crypto landscape.

Grayscale's landmark court victory against the SEC in 2023 helped pave the way for approval of spot bitcoin ETFs last year.

Morgan Stanley, BofA Securities, Jefferies and Cantor are the lead-managing bookrunners. Grayscale will list on the NYSE under the symbol "GRAY."

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Leroy Leo, Sahal Muhammed and Tasim Zahid)