DIGIVESTASI - US Dominates Venture Capital Investments in the Crypto Sector in Q4 2024

In the fourth quarter of 2024, approximately 46% of the total venture capital (VC) funds invested in crypto startups originated from US-based firms. This percentage significantly surpassed Hong Kong, which ranked second, receiving only 16% of global venture capital funds.

According to a report from Cointelegraph.com, the United States' dominance in venture capital funding reflects its role as a central hub for innovation and development in the crypto industry, despite facing complex regulatory challenges.

A report published by Galaxy Digital on January 15, 2025, also highlighted global funding trends in the crypto sector. Despite stringent regulations, US-based companies continued to lead, accounting for 36% of global venture capital transactions. This figure far exceeds Singapore (9%) and the United Kingdom (8%).

Ryan McMillin, co-founder and chief investment officer at Merkle Tree Capital, an Australian crypto investment management firm, stated that the United States' dominance is driven by its well-established financial market and highly advanced innovation sector.

Although the previous administration was perceived as less supportive of the crypto industry, McMillin believes that US leadership remains strong due to the presence of numerous investors and limited partners concentrated in the country.