Tepid Flow of Venture Capital Funding Poses Downside Risk for Crypto Industry

  • 📰 TheBlock__
  • ⏱ Reading Time:
  • 41 sec. here
  • 14 min. at publisher
  • 📊 Quality Score:
  • News: 62%
  • Publisher: 53%

Finance News

Venture Capital,Funding,Crypto Industry

JPMorgan analysts warn that the relatively low flow of venture capital funding into the crypto industry this year could hinder its sustained recovery. Despite the recent resurgence in the crypto market, VC flows remain subdued compared to previous years, posing a downside risk. While the crypto sector has seen some momentum in VC investment, it still lags behind previous years' levels. However, more venture capital firms are raising new funds amidst the crypto market rebound.

The relative tepid flow of venture capital funding into the crypto industry this year, despite the recent crypto market resurgence, presents a downside risk, according to JPMorgan analysts.

Venture capital funding in the crypto sector has picked up momentum so far this year, yet it continues to lag behind previous years. The Block Pro's Deals Dashboard shows that the crypto industry has attracted $3.2 billion in VC investment year-to-date, compared to over $4 billion in the first four months of last year.

While VC funding appears to be slowly reviving, crypto hedge funds are more active this year, and their assets under management have increased sharply over the past six months, estimated at around $20 billion, the JPMorgan analysts said.The JPMorgan analysts reiterated in Thursday's report that there is no more than a 50% chance of spot Ethereum exchange-traded fund approval in May, but the U.S. Securities and Exchange Commission will eventually approve such funds.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 464. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Beyond Capital: The European Investment Fund's Blueprint For A Thriving European Venture EcosystemSerial technology entrepreneur with 10+ years of experience building scalable tech ventures; leading product and development teams, selling to and co-developing products with Fortune 100 customers, raising capital from global professional investors.
Source: ForbesTech - 🏆 318. / 59 Read more »