Crypto startups are on track to secure $12 billion in venture capital investments this year, according to DL News, with the sector already receiving $5.5 billion in funding so far in 2024.
In 2023, crypto startups raised $8.2 billion, but experts forecast 2024 to be a landmark year for crypto funding. This optimism is partly driven by pro-crypto policies from 2024 Republican presidential nominee and former president Donald Trump. Additionally, recent behind-the-scenes engagements from Democratic representatives with the crypto industry have fueled speculation about more favorable policies for digital assets in the near future. Experts believe that supportive regulations could spur innovation in the U.S., opening new opportunities and attracting significant capital to the burgeoning crypto sector.
Several factors are contributing to this positive outlook. The Federal Reserve’s potential interest rate cuts and the launch of spot bitcoin exchange-traded funds (ETFs) in January, which have already seen net inflows exceeding $17 billion, are among them. Ethereum ETFs have also made a strong entrance, recording over $4 billion in trading volumes in their first week.
In terms of regional investment, North American crypto firms have attracted $3.1 billion, accounting for more than half of the total funding and marking a 50% increase from last year. In Asia and Europe, crypto investments have reached $1.2 billion. Meanwhile, crypto startups in Australia and South America have secured $40 million and $30 million, respectively.
“America dominates global innovation, harboring the largest capital markets and facilitating investment into growing, nascent industries such as crypto and AI,” Joshua de Vos, research lead at crypto data provider CCData, told DL News.
Related Topics:
