Institutional adoption of cryptocurrencies is making a big jump, especially with the adoption of Ethereum investment funds

After a period of decline, cryptocurrencies have witnessed a noticeable recovery in the past few days, prompting traditional financial institutions (TradFi) to plan to benefit from this rise.

Renewed optimism has contributed to boosting investment flows between institutions and the cryptocurrency sector.

For example, BNY Mellon is expanding its digital assets team, State Street plans to offer cryptocurrency custody services, while Franklin Templeton intends to launch a new cryptocurrency fund.

Venture capital inflow saw a decline from $14.6 billion in 2021 to $1.62 billion in 2023, a year-on-year decline of 83%.

In the first quarter of 2024, funding for traditional CeFi financing projects witnessed a decline of 58% compared to the first quarter of 2023.

Venture capital is moving towards projects that integrate the crypto financial environment with traditional frameworks.

For example, ClearToken attracted a $10 million seed round, and Securitize raised $47 million to develop a regulatory-compliant platform for digital assets.

The bottom line:

The green light for crypto ETFs represents a boost to the legitimacy of cryptocurrencies, providing an opportunity that may not be repeated.