PANews reported on August 10 that according to Cointelegraph, Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, said that venture capital firms have significantly slowed down their investment in cryptocurrencies. The reasons are somewhat subtle. First, most of the LPs just want to surpass the returns of index funds. Second, in the medium term, the investment return ratio of holding Bitcoin and Ethereum can easily beat index funds.
According to RootData, crypto VC funding exceeded $1 billion in three different months in 2024: March ($1.09 billion), April ($1.04 billion), and July ($1.01 billion). This is a significant increase compared to the previous year, which only reached this level once before, in November 2023 ($1.29 billion). However, it is still significantly lower than two years ago, when crypto VC funding exceeded $4 billion in each of the first four months of 2022.
