Ethereum News Today: Gemini's IPO Gambit: Staking, Derivatives, and a $2.2B Gamble

Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, is preparing for an initial public offering (IPO) on the Nasdaq under the ticker symbol "GEMI" [1]. The company has filed a public S-1 registration statement with the Securities and Exchange Commission, setting a planned offering of 16.67 million shares priced between $17 and $19 per share [2]. At the upper end of the proposed range, Gemini is projected to raise up to $316.7 million, which would value the firm at $2.22 billion [2]. This valuation marks Gemini as one of the most anticipated crypto IPOs of the year, following in the footsteps of stablecoin issuer Circle and the crypto exchange Bullish [2].

As part of its expansion, Gemini has been strengthening its presence in Europe, where it has recently launched ether (ETH) and solana (SOL) staking services for European Economic Area (EEA) users. This move is supported by Gemini’s approval under the Markets in Crypto-Assets Regulation (MiCA) in Malta and its authorization under the Markets in Financial Instruments Directive (MiFID II) in May [3]. These developments reflect Gemini’s broader strategy to position itself as a major player in the European cryptocurrency market. The exchange has also introduced perpetual futures contracts denominated in Circle’s USDC stablecoin, offering up to 100x leverage with no expiry date [4].

Gemini’s recent expansion in the EU is driven by growing demand for risk-managed financial instruments in the crypto space. According to Gemini’s head of Europe, Mark Jennings, the derivatives market has experienced significant growth, estimated to be worth $23 trillion by the end of 2025 [3]. This growth is contrasted with declining volumes in spot trading, where crypto spot trading volume across major centralized exchanges fell by 32% in the first two quarters of 2025, netting just $3.6 trillion in Q2 [3]. Meanwhile, crypto derivatives volume reached $20.2 trillion in the same period, underscoring the shift in investor preferences toward more sophisticated financial products.

Ethereum staking has also gained traction in the EU, with staking deposits surging by 28% in 2025 compared to 2024, reaching $90 billion in total staked ETH [3]. Gemini Staking allows users to earn variable returns on ether and up to 6% on solana, with no minimum amount required. This product is available to both retail and institutional investors, with a particular appeal to sophisticated, professional retail investors seeking passive income from a centralized exchange [3].

Gemini’s IPO filing comes amid a challenging regulatory landscape. The company has faced multiple regulatory actions, including a 2023 SEC charge for selling unregistered securities, specifically related to its now-defunct high-yield Earn product. The product, which caused a rift with crypto investment firm Genesis, led to customer withdrawal pauses in late 2022. Gemini has since returned at least $1.1 billion to Earn customers and settled regulatory fines, including a $37 million payment to New York’s Department of Financial Services and a $5 million settlement with the Commodity Futures Trading Commission [2]. Despite these challenges, the firm has continued to expand its product offerings and regulatory compliance efforts, with the recent transition to a Malta-based entity to align with MiCA requirements [4].

Financially, Gemini reported $142.2 million in revenue in 2024, up from $98.1 million the previous year. However, the firm has recorded losses in recent periods, with a net loss of $282.5 million on $68.6 million in revenue in the first half of 2025. This follows a loss of $41.4 million on $74.3 million in revenue for the same period in 2024 [2]. These figures highlight the operational challenges facing the crypto sector amid regulatory uncertainty and market volatility. Nevertheless, Gemini remains optimistic about the long-term growth potential of the crypto market, which it estimates could capture “multi-trillion-dollar opportunities” over the next few decades [1].

The IPO is expected to be led by Goldman Sachs, Citi, Morgan Stanley, and Cantor as lead bookrunners [2]. With the broader crypto market showing mixed performance and regulatory scrutiny intensifying, Gemini’s public offering will be closely watched as a test of investor sentiment toward the sector. The firm’s ability to navigate these challenges while expanding its product suite and geographic reach may determine its success in the public markets.

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[1] The Winklevoss Twins Are Behind Crypto's Next Big IPO (https://www.investopedia.com/the-winklevoss-twins-are-behind-crypto-s-next-big-ipo-here-s-what-you-need-to-know-gemini-11803355)

[2] Gemini IPO aims for $2.2B valuation (https://www.bankingdive.com/news/gemini-ipo-winklevoss-sec-nasdaq-valuation-trade/759166/)

[3] Gemini launches derivatives and ETH, SOL staking in Europe (https://cointelegraph.com/news/gemini-crypto-derivatives-europe-launch)

[4] Crypto Exchange Gemini Expands EU Offering with Staking and Perpetuals (https://www.coindesk.com/business/2025/09/05/crypto-exchange-gemini-expands-eu-offering-with-staking-perpetuals)