Venture capital investments in cryptocurrency startups are expected to reach $12 billion this year. As of 2024, the sector has received $5.5 billion in investment.
As a result of the pro-crypto policies put out by 2024 Republican presidential nominee and former president Donald Trump, experts estimate that 2024 will be a historic year for startup funding for the crypto business, with $8.2 billion raised by crypto startups last year. Democrats have also been reaching out to the cryptocurrency business behind closed doors in recent weeks, which has fueled rumors that more progressive laws may be implemented for cryptocurrencies in the years to come. Experts predict that innovation in the U.S. will flourish if laws promoting the digital asset sector are approved, which will provide the budding cryptocurrency business with new prospects and an influx of funds.
The potential rate cut by the Federal Reserve and the introduction of spot bitcoin exchange-traded funds (ETFs) in January, which have seen net inflows of over $17 billion, are two further encouraging considerations. Additionally, Ethereum ETFs have entered the market, recording trading volumes of almost $4 billion in just their first week.
North American cryptocurrency companies have raised $3.1 billion, or over half of the entire investment, up 50% from the previous year. Investments in cryptocurrency companies in Asia and Europe came to $1.2 billion. In other news, South American companies raised $30 million in investment, while Australian enterprises focused on cryptocurrency garnered $40 million.
According to Joshua de Vos, research head at CCData, a provider of crypto data, America leads the world in innovation because it has the biggest capital markets and encourages investment in developing, emerging sectors like AI and cryptocurrency.
