Crypto startups to gain $12bln from VC investments this year

If regulations supporting the digital asset sector come to pass, innovation is likely to take place in the U.S., experts say, bringing new opportunities – and a surge of fresh capital – to the crypto industry

Crypto startups are poised to gain $12 billion from venture capital (VC) investments this year, according to DL News, with the sector already recording $5.5 billion in investments so far in 2024.

Last year, crypto startups raised $8.2 billion, but experts forecast that 2024 will be a banner year in startup funding for the crypto industry, thanks to pro-crypto policies espoused by 2024 Republican presidential nominee and former president Donald Trump. Representatives from the Democratic Party have also made behind-the-scenes overtures to the crypto industry in recent weeks, fuelling speculation that crypto might see more favourable policies in the coming years.

If regulations supporting the digital asset sector come to pass, innovation is likely to take place in the U.S., experts say, bringing new opportunities – and a surge of fresh capital – to the crypto industry.

Other positive factors include the Fed’s possibility of cutting interest rates and the January debut of spot bitcoin ETFs, which have recorded net inflows exceeding $17 billion. Ethereum exchange traded funds have also arrived onto the scene, logging trading volumes of over $4 billion during their first week alone.

Crypto companies in North America have secured $3.1 billion of the total funding, representing more than half of all investment – a 50% rise from last year.

In Asia and Europe, investments in crypto companies totalled $1.2 billion.

Elsewhere, crypto startups in Australia received $40 million while firms in South America received $30 million worth of investment.

America dominates global innovation, harbouring the biggest capital markets and facilitating investment into growing, nascent industries like crypto and artificial intelligence, Joshua de Vos, research lead at CCData, a crypto data provider, told DL News.