Crypto Venture Funding to Hit $18 Billion in 2025
Cryptocurrency venture capital funding is expected to reach approximately $18 billion by 2025, according to PitchBook analysts.
That’s because venture capitalists are looking forward to a favorable regulatory environment following Donald Trump’s victory.
Cryptocurrency investment will soar in 2025
in a Interviewed by CNBCAnalyst Robert Le predicts that cryptocurrency investment will reach $18 billion in the new year, citing the return of “generalist” investors following Bitcoin’s post-election rally. That’s a 50% jump from 2024 levels.
“Our forecast is that venture capital investment will reach $18 billion or more by 2025,” PitchBook’s Robert Le said.
Talking about funding in 2024, Le said the first quarter saw a lot of funding invest Bitcoin ETF approved. Positive sentiment drove venture capitalists into the market.
However, investment subsequently slowed as Bitcoin faltered during the summer slump.
Robert Le further pointed out that a number of favorable conditions have been set for the project. investor return 2025.
“The setup looks great, the regulatory environment is expected to be more favorable, the macroeconomic environment looks pretty good, and a lot of tokens, SolanaBitcoin, they have all reached or exceeded ATH. Our forecast is that venture capital investment will reach $18 billion or more by 2025, a 50% increase from last year. ” Le explained.
However, the $18 billion figure is significantly lower than the $33 billion invested in 2021. According to Galaxy ResearchIn 2021, venture capitalists invested more than $33 billion in crypto/blockchain startups, of which $22 billion was used in financing.
and, Crypto Startups Received nearly 5% of venture capital allocated in 2021.
In an interview with CNBC, Robert Le also talked about how more traditional financial institutions will enter the cryptocurrency field in 2025. He said tradfi had a more “trustworthy” relationship with regulators. This could help bring more credibility to the cryptocurrency space.
“We are talking to some big companies and they are all interested in cryptocurrencies again. So we expect them to start investing in cryptocurrencies next year as well, which will be a big push. More traditional financial institutions will enter the space , which will increase people’s credibility and trust in cryptocurrencies,” Le added.
Another interesting point is that investment priorities will change in 2025. Le said there has been a lot of investment in infrastructure in the past two years. Therefore, next year we will invest in strengthening the application layer to attract more users.
When it comes to regulators, Le said it would be beneficial if the SEC sets new cryptocurrency rules. However, Le further added that even if they did not take any proactive action, it would still be much better than the strict enforcement of the past two years.
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