This year, $12 billion in venture capital firms will invest in cryptocurrency startups, with Trump perceived to be driving this trend.
The $8.2 billion raised by cryptocurrency entrepreneurs in 2023 is expected to be surpassed.
PitchBook data indicates that over $12 billion will be invested in industry initiatives this year, and companies have already secured over $5.5 billion in 2024.
Others, meanwhile, assert that the US election might lead to an even greater payout, particularly in North America, which has taken in more than half of the funding.
Joshua de Vos, research head at digital asset data company CCData, told DL News that “we might see an acceleration of VC funding into crypto should Trump win the presidential election.”
“More opportunities, improved funding, tax breaks, and clearer regulations could result from the removal of current administrative uncertainties.”
The story that a fresh bull market is imminent has been reinforced by the introduction of spot Bitcoin and Ethereum exchange-traded funds as well as indications that the Federal Reserve may lower interest rates.
North America assumes the lead
According to recent PitchBook data, North American cryptocurrency companies have raised more money than ventures in any other continent.
According to de Vos, “America leads the world in innovation, housing the biggest capital markets and enabling investment into expanding, emerging industries like cryptocurrency and AI.”
Up from over 50% in 2023, the continent’s cryptocurrency businesses have taken home 56%, or $3.1 billion, of all global funding thus far this year.
It remains less than the 63% global investment share that North American cryptocurrency ventures took in 2022.
Startups in South America and Australia raised $30 and $40 million, respectively.
Boom in elections
The information is released as the United States prepares for the November election, which has been clouded by criminal convictions, an attempted assassination, and the departure of incumbent Joe Biden.
The cryptocurrency business has become involved in the election, claiming that it is a crucial topic that will impact the result.
Trump has emerged as an ally, while Biden’s potential heir, Vice President Kamala Harris, has not publicly stated her views on the industry.
He has promised to remove Securities and Exchange Commission Chair Gary Gensler, who has initiated a flurry of enforcement measures against major players in the cryptocurrency space, and to establish a nationwide Bitcoin stockpile.
Many in the industry now back Trump because of his promises.
The managing director and co-founder of digital asset investor KR1, Keld van Schreven, stated to DL News that “this election could be a pivotal moment for the industry.”
