{"id":30433,"date":"2026-06-25T13:18:24","date_gmt":"2026-06-25T12:18:24","guid":{"rendered":"https:\/\/investx.fr\/en\/2026\/06\/25\/goldman-sachs-700-billion-ipos-stock-market\/"},"modified":"2026-06-25T13:18:28","modified_gmt":"2026-06-25T12:18:28","slug":"goldman-sachs-700-billion-ipos-stock-market","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/crypto-news\/goldman-sachs-700-billion-ipos-stock-market\/","title":{"rendered":"Goldman Sachs: 3 Reasons Why $700 Billion in IPOs Won’t Flood the Stock Market"},"content":{"rendered":"\n

Fears of a wave of new equity issuances have been haunting investors for months. Goldman Sachs<\/strong> is pushing back against this prevailing sentiment, delivering a three-point analysis aimed at putting those concerns to rest.<\/p>\n\n\n\n

Ben Snider<\/strong>, chief U.S. equity strategist at Goldman Sachs<\/strong>, argues that this anxiety has surpassed even concerns around AI or the macro environment \u2014 and that it is, nonetheless, unfounded. Here is why.<\/p>\n\n\n\n

$700 Billion in IPOs: A Record Figure, But a Relative One<\/h2>\n\n\n\n
\"IPO<\/figure>\n\n\n\n

Goldman Sachs<\/strong> is forecasting approximately $700 billion in equity issuances in 2025<\/strong>, combining IPOs<\/strong> and follow-on offerings. In absolute terms, that figure represents an all-time record. Yet Ben Snider is quick to put it in perspective: measured against the total market capitalization of U.S. equities<\/strong>, that amount accounts for roughly just 1% of the market<\/strong>.<\/p>\n\n\n\n

That ratio is not only below the long-term historical average, it also aligns with levels seen between 2015 and 2019 \u2014 a period widely regarded as stable and healthy for markets. In other words, the overall pie has grown so large that the slice taken by new issuances remains proportionally modest.<\/p>\n\n\n\n

Snider also notes that the number of transactions remains within historical norms<\/strong>, even if their individual size is larger. It is a handful of mega-IPOs inflating the total, not an explosion in the volume of deals coming to market.<\/p>\n\n\n\n

Share Buybacks Absorb the Pressure Before Investors Even Have To<\/h2>\n\n\n\n

The third argument from Goldman Sachs<\/strong> may be the most structurally significant: corporate demand for equities remains massively greater than supply<\/strong>. U.S. companies are expected to surpass $1 trillion in share buybacks in 2025<\/strong>, marking a record level.<\/p>\n\n\n\n

This mechanism is often underestimated in market flow analysis. Before mutual funds, hedge funds, or retail investors are required to absorb a single new issuance, companies themselves are buying back their own shares at a pace that far exceeds the volume of new stock being brought to market. The supply\/demand balance<\/strong> therefore remains structurally favorable.<\/p>\n\n\n\n

For crypto investors<\/a> accustomed to monitoring on-chain flows and burn mechanisms, the logic will feel familiar: when supply destruction outpaces supply creation, selling pressure eases mechanically. Buybacks play an analogous role in traditional markets.<\/p>\n\n\n\n

What This Means for Broader Market Sentiment<\/h2>\n\n\n\n

The Goldman Sachs<\/strong> analysis comes at a time when market sentiment<\/strong> remains fragile across risk assets, crypto included<\/a>. The correlation between equity markets and cryptocurrencies<\/strong> has strengthened in recent years, particularly during periods of liquidity stress. A stabilization in equities therefore mechanically reduces pressure on digital assets as well.<\/p>\n\n\n\n

If IPOs<\/strong> are not draining available liquidity to the extent some feared, that leaves more floating capital potentially rotating into alternative asset classes \u2014 including Bitcoin<\/strong> and altcoins. The scenario of a global liquidity squeeze<\/strong> driven by new equity issuances appears to have been dismissed by one of Wall Street’s<\/strong> most influential players.<\/p>\n\n\n\n

Whether the market itself will validate this thesis over the coming quarters remains to be seen \u2014 particularly if macro conditions deteriorate or long-term yields resume their climb<\/a>.<\/p>\n\n\n\n

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