According to a recent report from Galaxy Digital, 46% of crypto venture capital funds were invested in US-based startups in the fourth quarter of 2024. This trend has occurred despite an often hostile regulatory environment, highlighting the resilience and the attraction of American companies in the crypto sector. What will it be in 2025?
Crypto: The United States dominates venture capital in 2024!
The report released on January 15, 2025, reveals that the United States not only dominated in terms of capital invested, but also in the number of deals, accounting for 36% of all venture capital deals in the crypto space. Hong Kong and Singapore follow with 16% and 9% of transactions respectively. Despite regulatory challenges, US companies continued to dominate the cryptocurrency sector in the fourth quarter of 2024.
Ryan McMillin, co-founder and chief investment officer at Merkle Tree Capital, explained that this domination is mainly due to the strength of the American financial market and its innovation sector. Additionally, He noted that the imminent arrival of the Trump administration, perceived as pro-crypto, could further increase venture capitalist activity in the sector.
An explosion of venture capitalists in 2025 with the Trump administration
Trump's inauguration, scheduled for January 20, is optimistically anticipated by cryptocurrency market participants. Many pro-crypto candidates have also won seats in Congress, which could make the US administration the most crypto-friendly in history. McMillin predicts that venture capitalist activity in crypto could explode this year thanks to this potentially supportive administration.
Alex Thorn, head of research at Galaxy Digital, and Gabe Parker, research analyst, noted that the upcoming presidential administration and Congress are expected to be the most pro-crypto in history, and they expect that as American domination increases.
In sum, the massive investment of venture capital funds in American cryptocurrency startups in the fourth quarter of 2024 demonstrates the robustness and continued attractiveness of the American market, despite regulatory challenges. With the arrival of a potentially crypto-friendly administration, the year 2025 could see a significant increase in investment and innovation in this dynamic sector.
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