The hype around cryptocurrency companies going public is waning because markets are still viewed as insufficiently large for the traditional finance (TradFi) firms that are taking an increased interest in the industry.

Fewer investors feel as confident as they did last year, according to a report from the influential CfC St. Moritz, Switzerland crypto conference, which recorded the outlook and predictions of 242 respondents at the event.

After a record 2025 that saw 11 IPOs raise $14.6 billion, “sentiment points to waning IPO intensity and rising consolidation risk,” the report said. Liquidity shortages are seen as the biggest threat, according to the report.

Of 242 respondents, 107 believe “TradFi is taking over” crypto, up more than 50% year over year.

Attendees, however, noted an improvement in crypto regulation in the U.S. and UAE. The U.S. jumped from last to second place in regulatory favorability within a year, reflecting rising confidence, and the UAE remains the top jurisdiction.

“The CfC St. Moritz Report captures the thinking of some of the most influential decision-makers in digital assets,” said Nicolo Stöhr, CEO of the CfC St. Moritz. “Their responses point to a clear shift in priorities, from hype to infrastructure, liquidity, and regulatory credibility, as well as a rapidly changing view of the U.S. market. This is informed capital speaking, and it reflects where the industry is truly heading.”