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Frank Spiteri, CoinShares

Unprecedented venture capital money is going into the crypto space says CoinShares

Bitcoin was back in the spotlight last week with its largest single day gain in six weeks, after (apparently false) rumours were spread of crypto payment acceptance from Amazon by the end of the year, says CoinShares’ chief revenue officer, Frank Spiteri.  

“But below the surface of single coin price movements, unprecedented VC money is being invested in this space,” Spiteri writes.

Institutions are turning to long term investments in crypto companies, according to Spiteri, with the largest funding round by a crypto firm last week with crypto exchange FTX raising USD900 million.

The second quarter saw a record USD4.4 billion in venture capital raised by blockchain firms and out of the record USD70.4 billion invested by VC firms in Q2 globally, venture capital raised by blockchain firms represented 6.25 per cent of the total, Spiteri says.

CoinShares’ Head of Research, Chris Bendiksen says: “VC inflows into challenger industries is often seen as ‘smart money’ positioning on the expectation of longer term thematic developments. The recent record levels of raises into crypto companies and protocols signals a healthy and increasing appetite for secular exposure to an area of expected growth. We see this as another sign of positive, yet less considered, development taking place in the industry as a whole, and further indication that the bull market may still not be quite over.” 

CoinShares has published the following list of the most noteworthy raises in Q2:

Derivatives exchange FTX – USD900 million
Hardware wallet Ledger – USD380 million
DeFi blockchain Solana – USD314 million
Paxos – USD300 million
Bitso – USD250 million
BitDAO – USD230 million

The firm says that it’s not just traditional investors who are participating either. “Visa and PayPal joined a USD300 Million fund raised by Blockchain Capital and, rather surprisingly, Fox Entertainment invested USD100 million into an NFT project.

“We expect this trend to grow as VC firms continue to raise more and more for blockchain themed funds, with Andreessen Horowitz having just raised an impressive USD2.2 billion for its third crypto fund,” CoinShares concludes.
 

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