BLK - Crypto Venture Capital Funding Rose 52% In March

2024-04-03 12:23:16 ET

Venture capital fundraising for various cryptocurrency projects and investments grew by more than 50% in March as digital asset prices rallied.

The amount of money venture capitalists allocated to crypto projects increased 52% during March as the price of %Bitcoin (CRYPTO: ) hit an all-time high driven by the success of spot exchange-traded funds (ETFs).

Investors put $1.16 billion U.S. of new money into the crypto industry in March, the second-highest amount over the past 12 months, according to numbers compiled by RootData.

Most of the venture funding went into projects focused on cryptocurrency infrastructure and decentralized finance (DeFi) projects, especially those built on the Ethereum (ETH) blockchain.

Roughly a third of the capital was allocated to projects in the U.S. with the majority going to projects overseas.

The surge in fundraising came as Bitcoin’s price hit a record high of $73,798 U.S. on March 14.

The dozen spot Bitcoin ETFs from issuers such as BlackRock (NYSE: ) and Fidelity have reignited interest in the cryptocurrency industry.

More than half of the investments made in March were between $1 million U.S. and $5 million U.S. and were used as seed capital.

Investments of more than $20 million U.S. made up roughly 10% of the venture capital funding in March, said RootData.

Bitcoin’s price has recently slumped and currently trades at $66,000 U.S. So far in 2024, Bitcoin’s price has increased 50%.