After Donald Trump won the presidential election, the market responded positively, not only inspiring companies that were previously on the fence to consider going public in the USA as early as next year, but also driving a significant increase in the stock market, especially with bank stocks hitting multi-year highs. Major indices like$Russell 2000 Index (.RUT.US)$rising to near three-year highs.$S&P 500 Index (.SPX.US)$, also reaching historic highs, while the 'fear index' VIX dropped to its lowest level since September. This series of positive market reactions is partly attributed to investors' optimistic expectations of Trump's promises to simplify regulations and lower taxes.

Trump's victory not only brought short-term optimism to the market but may also accelerate the IPO process for some private equity companies. For those companies that are considering or hesitating, this victory provides them with the impetus to move forward.

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According to the data, the funds raised through initial public offerings on the US exchanges this year have approached nearly $40 billion, a 64% increase from the same period last year, although still below the average level of the pre-pandemic decade. However, with a relatively short list of companies publicly filed, the surge in IPO activity may not happen immediately, but listed companies and their major shareholders may take advantage of this market rebound to profit.

Bank stocks, especially, benefited from Trump's victory. $Citigroup (C.US)$Please use your Futubull account to access the feature.$JPMorgan (JPM.US)$ and $Goldman Sachs (GS.US)$ The stock prices of the largest US banks surged on Wednesday as investors bet on Trump fulfilling his promises to lower corporate tax rates and reduce industry regulations. Trump has pledged to reduce the corporate tax rate from 21% to 15% and eliminate ten regulations in every new rule, providing banks with a more attractive environment compared to their competitors. Additionally, he also promised a comprehensive overhaul of the country's regulatory agencies, including the dismissal of regulators, including the chairman of the Securities and Exchange Commission.

Analysts point out that with the improvement of the regulatory environment, the review process of bank stocks may become more friendly and transparent. Trump's victory has also brought a series of good news to bank bosses in the USA, including optimistic expectations for coping with a declining interest rate environment and the Fed's ability to achieve an economic soft landing. All of this helps.$KBW Nasdaq Bank Index (.BKX.US)$It has risen by nearly 41% so far this year.

In addition, some companies may take advantage of this market rebound to raise growth capital and provide liquidity to internal personnel. Although the IPO schedule may not be accelerated immediately, there is still confidence in the demand for larger IPOs next year and beyond.

Peter Atwater of Financial Insyghts states that Trump's victory is also a positive signal for industries less related to trade, as people generally believe that the Trump administration will be beneficial to businesses.

Will Trump's victory bring a wave of cryptos IPOs?

The outcome of the US election not only has profound impacts on the global political landscape but also affects the nerves of the cryptos industry, especially for those venture capital funds expecting liquidity through Initial Public Offerings (IPOs). The focal point of these funds is on how the election results will impact crypto regulation policies and the new Securities and Exchange Commission (SEC) chairman, directly affecting the listing process of leading US cryptos companies.

With its share price falling by 29.5% this year, the market has questioned Musk's multi-line operations strategy and its impact on the company's future. As CEO of Tesla, Musk also manages SpaceX, Neuralink, The Boring Co., as well as his recently acquired social media platform X (formerly Twitter) and AI startup xAI.$Bitcoin (BTC.CC)$The market is waiting with anticipation for a potential wave of new listings that may support cryptos candidates. This expectation, which has been put on hold for years under strict regulatory scrutiny, could change if the current SEC chairman Gary Gensler steps down or if Trump fulfills his promise to dismiss him.

Analyst Matthew Kimmell of the crypto asset management company CoinShares pointed out that the Trump administration may nominate leaders more favorable to crypto assets based on their statements supporting digital assets. This could impact the prospects of crypto IPOs, especially given changes in the SEC leadership and the regulatory framework they establish.

Industry rumors suggest that companies like Circle Internet Financial, Kraken, Fireblocks, Chainalysis, and eToro may go public in the next one to two years. While these companies have been rumored to go public for months, there has been no substantial progress as of yet.

Circle secretly submitted an IPO plan to the SEC in January. Many industry insiders attribute the scarcity of crypto IPOs in recent years to Gensler, who has led enforcement actions against industry giants like Binance and Kraken.$Coinbase (COIN.US)$...

The prospects for crypto IPOs have become brighter regardless of who wins in November. Republican presidential candidate Trump strongly supports the crypto industry and promises to dismiss Gensler if he wins. His Democratic opponent, Vice President Harris, remains silent on this issue, but she has expressed support for establishing a digital asset regulatory framework with appropriate safeguards.

Haseeb Qureshi, the managing partner of Dragonfly Capital, a venture capital fund for cryptos in San Francisco, stated that the post-election environment should be more favorable for crypto IPOs, whether it is Trump pushing the SEC to take a more crypto-friendly stance, or Harris replacing Gensler with her own pick, both could lead to more lenient crypto regulations in the USA.

As Bitcoin approaches historical highs and risk appetite recovers, this may ease the minds of many venture capital companies looking to exit. However, it may not be easy for all IPO applicants.

Qureshi pointed out that some companies that have conflicted with the SEC may still face difficulties under the leadership of the Harris government, but companies like Fireblocks and Chainalysis, which are less controversial, should find it easier to go public, and may even go public before next autumn.

Bitcoin options traders are also monitoring this price. If by the end of November the price of the underlying crypto rises to over $80,000, a large number of call options will become in-the-money options.

Editor/rice