US Leads the Way to A 6x Surge in Crypto Venture Investments to $21.3 Billion
While the total value of funding in crypto startups dropped by about a third to $214 million in China, it increased over sevenfold to $10.9 billion in the US.
The US is leading the backing of crypto and blockchain startups, surpassing Asia for the first time in four years, according to year-to-date data collected by research firm CB Insights.
This development is in line with China's crackdown on crypto this year, forcing many companies to either shutter operations or relocate overseas.
“We’ve basically seen no deals in China,” said CB Insights analyst Chris Bendtsen. “In Asia, the companies are really based in Hong Kong, India, and Singapore.”
While China takes a backseat, others are taking the opportunity to join the crypto space, with the fourth quarter of 2021 already the biggest ever for crypto startup investing, “and we’re not even into December,” Bendtsen said.
Globally, the value of venture investments in the industry recorded over a sixfold increase as it surged from $3.1 billion in 2020 to $21.3 billion through Nov. 30.
The number of deals in China fell by more than half from last year to 41 so far this year, while the total value of funding has dropped by about a third to $214 million.
Meanwhile, the US is leading the way as the total funding to blockchain and crypto startups surged more than sevenfold to $10.9 billion.
This represents that crypto is going mainstream, and investors in private equity, venture capital, and corporate venture capital are “all believers now, and we’re only going to see this trend continue next year,” Bendtsen said.
David Pakman of CoinFund said he’s seen interest surge since Coinbase went public in April. “That woke up a lot of the traditional investors,” he said, adding that even endowments and family offices are among those to invest in crypto this year.
Anthony Scaramucci’s flagship vehicle for investing in hedge funds also increased its exposure to crypto assets by almost 150% during Q3.
At the end of Q3, investments in digital funds and securities in the SkyBridge Multi-Adviser Hedge Fund Portfolios were recorded at $485 million, up from Q2 end of $195 million.
SkyBridge Capital’s exposure to crypto has increased in tandem with Scaramucci’s bullishness on crypto as he told CNBC last month that Bitcoin could eventually reach $500,000, which is currently trading around $57k.
Announcing new policy: when I get asked for money from political candidates, my first question is: “what’s your position on Bitcoin.” And then my second question is: “what’s your position on Bitcoin.” The mid-terms are coming. Let’s support FOBs (Friends of #Bitcoin)
— Anthony Scaramucci (@Scaramucci) December 1, 2021
SkyBridge Multi-Adviser added five new crypto investments during the third quarter, including $13 million in shares of Coinbase, a $35.4 million stake in Genesis Digital Assets, and a $22.6 million convertible note issued by NYDIG.