According to PANews, a report by Pitchbook forecasts that venture capital firms will significantly increase their investments in cryptocurrency in 2025, with funding expected to exceed $18 billion. This figure nearly doubles the projected $9.9 billion investment for 2024.
Pitchbook analysts suggest that the resurgence of comprehensive venture capital firms in the blockchain and cryptocurrency sectors, along with the involvement of major financial institutions, will bolster crypto-focused venture capital firms. Although the anticipated $18 billion investment is considerably lower than the $24.7 billion in 2021 and $29.8 billion in 2022, the participation of prominent traditional financial institutions like BlackRock, Franklin Templeton, and Goldman Sachs is expected to enhance investor confidence in the cryptocurrency market.
These institutions not only bring a vast customer base but also add legitimacy to the cryptocurrency industry, potentially accelerating mainstream investor acceptance of digital assets. Additionally, they offer expertise and long-standing relationships with regulators, positioning them as effective intermediaries capable of fostering a trust environment that crypto-native companies often struggle to achieve while ensuring regulatory compliance.