Crypto venture funding is expected to reach around $18 billion in 2025, according to a PitchBook analyst.
Indeed, after Donald Trump’s victory, venture capitalists expect a favorable regulatory environment.
Crypto Investments in 2025 Expected to Skyrocket
In an interview with CNBC, analyst Robert Le predicted $18 billion in crypto investments in the new year, citing the return of “generalist” investors following Bitcoin’s post-election rally. This represents a 50% jump from 2024 levels.
“Our prediction is that we’re going to see $18 billion or more in venture capital in 2025,” said Robert Le of PitchBook.
Speaking about funding in 2024, Le said the first quarter saw a good number of investments following the approval of Bitcoin ETFs. The positive sentiment has pushed venture capitalists into the market.
However, investments later slowed as Bitcoin faltered amid a summer slump.
Robert Le also observes that multiple favorable conditions are met for the return of investors in 2025.
“The setup looks great, the regulatory environment is expected to be more favorable, the macroeconomic environment looks pretty decent and many tokens, Solana, Bitcoin, have all reached their ATH or exceeded it. Our prediction is that we will see $18 billion or more in venture capital in 2025, which will be a 50% increase from last year. The explained.
However, the $18 billion figure is much lower than the $33 billion in investments made in 2021. According to Galaxy Research, venture capitalists have invested over $33 billion in crypto/blockchain startups in 2021, of which $22 billion was spent on fundraising.
Additionally, crypto startups received almost 5% of venture capital distributed in 2021.
In a conversation with CNBC, Robert Le also explained how in 2025 more traditional financial institutions will move into crypto. He said Tradfi had a more “trusting” relationship with regulators. This could help give more credibility to the crypto space.
“We’re talking to some of the big companies, and they’re all interested in crypto again. So we’re going to expect to see them start investing in crypto next year as well, and that’s going to be a big factor. More traditional financial institutions will enter the space, which will add much more credibility and trust in crypto,” Le added.
Another interesting point is that the direction of investments will change in 2025. Le said that in the last two years, a lot of investments have been made in the field of infrastructure. So, next year, investments will be made to strengthen the application layer in order to attract more users.
As for regulators, Le said that if the SEC writes new crypto rules, it would be beneficial. However, Le added that even if they don’t do anything positive, it’s still much better than the strict enforcement of the past two years.
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