TLDR:
– JPMorgan analysts warn of potential downside risk due to subdued crypto VC funding this year
– The SEC is expected to eventually approve spot Ethereum ETFs
JPMorgan analysts have raised concerns about the subdued flow of venture capital funding in the crypto industry this year, despite the recent market rebound. While VC funding has picked up momentum, it still lags behind previous years. The industry has attracted $3.2 billion in VC investment year-to-date, compared to over $4 billion in the same period last year. This presents a downside risk for sustained market recovery.
Despite this, more venture capital firms are raising new funds, indicating a potential revival in VC funding. Crypto hedge funds are also more active this year, with estimated assets under management of around $20 billion. Additionally, the SEC is expected to eventually approve spot Ethereum ETFs, though the chance of approval in May is no more than 50%.
