TLDR:
- Cryptocurrency startup funding rose to $2.4 billion in the first quarter of 2024.
- Global venture capital investments dropped to a near five-year low in the same period.
Cryptocurrency is gaining support from venture capitalists as funding for crypto startups rose to $2.4 billion in the first quarter of 2024. This marks the second straight quarter of increase, with 518 deals being made, a 40.3% rise from the previous quarter. This boost in funding comes as global venture capital investments hit a near five-year low. The rise can be attributed to expectations of lower interest rates and the introduction of the first U.S. bitcoin spot ETF, which has increased investor interest. Despite a decline in investor bets on digital asset startups since 2022, the approval of spot bitcoin ETFs by BlackRock and Fidelity has boosted the legitimacy of the asset class, sending bitcoin to a record high of $73,803 in March.
To read the entire article by Reuters, please click HERE.
