BitGo Holdings Inc. shares surged 25% above their offering price in their public trading debut. The crypto custody firm and its backers raised $212.8 million in a U.S. initial public offering, signaling renewed investor appetite for digital asset infrastructure plays amid a tentative market recovery.

The strong opening reflects a cautious thaw in the crypto IPO market, which had cooled significantly following the 2022 downturn. BitGo, a major player providing secure storage for institutions, benefits from growing regulatory clarity and institutional adoption of digital assets, a backdrop that could spur more listings.

Investors will watch how BitGo's stock performs in its first weeks, a key indicator for other crypto firms considering public markets. The offering's success hinges on the company's ability to expand its custody and settlement services beyond its current client base, navigating a competitive and evolving regulatory environment.