Venture Investments in Blockchain Startups Hits $2.4B

In the first quarter of this year, venture capital investors invested $2.4 billion in blockchain startups, according to a study by Pitchbook cited by Reuters.

This marks a continued growth trend from the fall of 2023. The recent legalization of exchange-traded crypto funds, specifically focused on investing in Bitcoin, has contributed to the industry’s attractiveness to investors.

Furthermore, investors anticipate an upcoming easing of monetary policy by the US Federal Reserve. The blockchain industry has seen success in April as well, with over $1 billion in venture capital funding for startups, as reported by RootData.

This equates to 518 transactions being completed in the first quarter. This represents a 40.3% increase in investments compared to the previous quarter. However, it should be noted that global venture capital investment is at a five-year low, highlighting the unique growth of the blockchain industry.

The majority of investments in this first quarter went towards startups aiding in the expansion of blockchain infrastructure.