January’s heightened volatility points to a rocky start to the year and may foreshadow continued uncertainty ahead. Despite this backdrop, investors have remained surprisingly resilient, showing little anxiety over global economic and geopolitical headwinds.
With investors appearing comparatively less nervous, rising expectations of Fed rate cuts in 2026 and the potential for a more accommodative regulatory environment, the risk appetite of investors might increase, adding another tailwind for the IPO market.
According to EY, global IPO sentiment is turning cautiously optimistic, backed by improving macro trends, monetary policy clarity and sustained enthusiasm for AI and technology-led growth stories.
One of the most compelling themes to watch this year is the lineup of companies preparing to enter the public markets. Among the most closely followed prospects, leading AI firms Anthropic and OpenAI have reportedly begun early IPO preparations, per the New York Times. Meanwhile, Elon Musk’s SpaceX has begun discussions with banks about a potential offering.
Additionally, according to the abovementioned article, these listings could deliver a significant boost to Wall Street, after years of muted activity, reigniting investor demand for AI exposure. Even one blockbuster IPO in 2026 could help open the door for a broader wave of offerings.
Regulatory Winds May Be Shifting in Favor of IPOs
Speaking at the New York Stock Exchange in early December, SEC Chairman Paul Atkins signaled reforms aimed at encouraging more companies to go public, as quoted on Forbes. Atkins indicated that a broad package of reforms is planned for 2026.
As per the Forbes article, Atkins emphasized re-centering corporate disclosures around “financial materiality,” covering only information essential for investment decisions, while extensive disclosures on ESG, executive pay and DEI could be scaled back.
He also pledged to reduce politicization in annual meetings and rein in shareholder litigation. If implemented, the changes could mark the most significant update to public company regulation in over a decade and encourage more firms to consider going public.
Blockbuster IPO Candidates for 2026
According to the Forbes article, a number of prominent, highly sought-after private companies are gearing up to enter the public markets this year. Elon Musk’s SpaceX leads the pack. Its IPO is likely to be the second-largest in history, potentially north of $1 trillion. This could raise $30 billion for initiatives, including solar-powered AI data centers in space.
Among the high-profile names, OpenAI is said to be planning a second-half 2026 IPO, seeking to raise $60 billion with a valuation nearing $1 trillion. Meanwhile, Anthropic has also started preparing for a public listing, with a valuation in the hundreds of billions. Other potential multi-billion-dollar tech IPOs include companies such as Discord, Stripe and Canva.
High-profile listings like these tend to drive market enthusiasm, attracting investors and motivating other firms to go public, potentially making 2026 a landmark year for IPOs.
ETFs to Consider
Below, we highlight a few funds that investors can consider to gain increased exposure to the IPO market.
The funds includeFirst Trust U.S. Equity Opportunities ETF FPX, Renaissance IPO ETF IPO, First Trust International Equity Opportunities ETF FPXI and Renaissance International IPO ETF IPOS.
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First Trust International Equity Opportunities ETF (FPXI): ETF Research Reports
Renaissance IPO ETF (IPO): ETF Research Reports
Renaissance International IPO ETF (IPOS): ETF Research Reports
First Trust US Equity Opportunities ETF (FPX): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
