Regulation
Cryptocurrency Startups Set to Invest $12 Billion in Venture Capital Funds This Year, as Trump Seems to Spur the Trend – DL News
- According to experts, investors will invest $12 billion in crypto startups in 2024.
- North American startups have already raised $3.1 billion this year.
- The US elections could trigger further funding.
Crypto startups are on track to surpass $8.2 billion in funding in 2023.
Investors will flock 12 billion dollars in industrial projects this year, and according to PitchBook data, companies have already raised more than $5.5 billion in 2024.
However, others argue that the U.S. election could trigger even bigger gains, especially in North America, which received more than half of all funding.
The topic? A victory for the pro-crypto candidate Donald Trump will trigger a wave of bullish investment.
“If Trump wins the presidential election, we could see an acceleration of VC funding in the cryptocurrency space,” said Joshua de Vos, head of research at digital asset data provider CCData. DL News.
“Removing current administrative uncertainties could lead to clearer regulations, new opportunities, and increased funding and tax breaks.”
Several positive factors have boosted the sector’s confidence in 2024 as it enters the US election cycle.
The launch of spot exchange-traded funds on Bitcoin and Ethereum and signs of a possible interest rate cut by the Federal Reserve have reinforced the idea that a new bull market is imminent.
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North America takes the lead
According to new data from PitchBook, North American cryptocurrency startups have raised more funding than projects from any other continent.
“America dominates global innovation, hosting the largest capital markets and facilitating investment in emerging and growing sectors like cryptocurrencies and artificial intelligence,” de Vos said.
The continent’s cryptocurrency firms have raised 56%, or $3.1 billion, of all global funding since the beginning of the year, up from nearly 50% in 2023.
This is still less than the 63% of global investment that North American crypto projects received in 2022.
Europe and Asia tied for second place. Projects in these regions both received $1.2 billion this year.
The Australian and South American startups raised $40 million and $30 million, respectively.
Election boom
The data comes as the United States prepares for November elections, which have been marred by criminal convictions, an assassination attemptAND Incumbent candidate Joe Biden withdraws from the race.
The cryptocurrency industry has made its way into the elections, discuss that cryptocurrency is a key issue that could determine the outcome.
While Biden’s heir apparent, Vice President My life is nice has not taken any public position on the sector, Trump has declared himself an ally.
He committed to creating a national reserve of bitcoin and oust Gary Gensler, the Securities and Exchange Commission chairman who has launched a flurry of enforcement actions against cryptocurrency heavyweights.
These promises have earned Trump the support of many in the industry.
Keld van Schreven, co-founder and CEO of digital asset investor KR1, said: DL News: “These elections could represent a pivotal moment for the sector.”
The drivers of the cryptocurrency market
- Bitcoin is down 0.7% over the past 24 hours, settling at $66,097.
- Ethereum is down 0.5% and is trading at $3,320.
What are we reading?
Eric Johansson is the editor-in-chief of DL News. Got a tip? Email eric@dlnews.com.