The crypto market has been on a roll this year, and investors are taking notice. According to data from Forge Global, the demand for crypto-related private equity has surged, with buy-side demand jumping a remarkable 28% compared to the second half of last year.

This surge in interest is driven by a few key factors. First, the soaring price of Bitcoin, which hit a new all-time high this year, has attracted a wave of institutional investors looking to get in on the action. The approval of spot Bitcoin ETFs has also opened up the market to traditional investors, further fueling the demand for crypto-related assets.

But it's not just the price of Bitcoin that's driving this trend. The prospect of initial public offerings (IPOs) from major crypto companies like Kraken and Chainalysis has also captured the attention of investors. Equity prices for these private firms have skyrocketed, with Kraken's shares up 77% this year and Chainalysis and Ripple seeing gains of 17% and 13%, respectively.

"There's pretty strong individual investor demand. On the institutional side, we've also seen an increase," explains Andrew Saeta, Forge's co-head of institutional sales. "A lot of people are excited about the prospects of what's going forward, especially since there are going to be changes from the regulatory perspective."

While the current demand for crypto-related private equity is not yet at the same level as the 2021 bull run, the surge in interest is a clear sign that investors are bullish on the future of the crypto industry. As more companies explore going public and the regulatory landscape continues to evolve, the crypto market is poised to attract even more attention from both individual and institutional investors.