Hi HODLers, Hiveans and Lions,
If you haven't read it out yet: The Galaxy Digital Q3-2024 Crypto & Blockchain Venture Capital has been released and it is good!
Main points
- Venture capital investment in crypto startups was $2.4bn (20% decline QoQ) across 478 deals (-17% QoQ) in Q3 2024.
- The industry is on track to barely get more funding than in 2023.
- High interest rates, spot crypto ETFs, and the hangover from 2022 are keeping allocators away from the industry.
- Still US Centric with 54% of investments in the US
- Most of the investments were in early stage companies (85%)
What I thought was interesting was that ETFs have dried out the VC market as it gave an easy way to get exposure to the sector without having to pay any management fees or do any research. I guess, it is good in the short-term but long-term it might be to the detriment of the ecosystem. Time will tell!
Any positive? Crypto VC Capital Invested is uncorrelated to Bitcoin Price!
That's a good sign that we are managing to have such strong price action while the VC and Private Markets are not currently pouring capital into the space.
Can you feel that #Bitcoin and #crypto is just about to go pop!?
Stay safe out there,