46% of crypto venture capital funding went to US startups in the fourth quarter, with Trump
Nearly half of all venture capital (VC) funding in the cryptocurrency space during the fourth quarter of 2024 went to U.S. startups. Galaxy Digital’s Crypto and Blockchain Venture Capital Report, presented on January 15, 2025, revealed this trend.
US venture capital firms lead Q4
The report showed that 46% of global venture capital funds were directed to US companies. Hong Kong ranked second with 16%, while Singapore and the United Kingdom had 9% and 8% respectively. The United States also topped the number of deals, accounting for 36% of all venture capital transactions globally.
Ryan McMillen, chief investment officer at Merkle Tree Capital, attributed this dominance to the mature financial system in the United States. Optimism about the incoming pro-cryptocurrency Donald Trump administration has fueled investments, he said.
“There is a large group of venture capitalists and limited partners in the United States,” McMillen noted. “The 46% increase in Q4 reflects expectations of a pro-crypto government.”
Trump is scheduled to be inaugurated on January 20, 2025. His administration promises to make the United States a global leader in cryptocurrencies. Hundreds of pro-cryptocurrency candidates also won seats in Congress.
Galaxy Digital report
Galaxy Digital Head of Research Alex Thorn expects US dominance to grow further. “The supporting management can finalize stablecoin frameworks and market structures,” he said. “This will open doors for traditional financial companies to enter cryptocurrencies.”
However, regulatory uncertainty remains an obstacle. The SEC has aggressively targeted cryptocurrency companies, issuing $8.2 billion in fines in 2024. However, enforcement cases decreased by 26% compared to the previous year.
Leadership changes at the SEC could change that. Trump has chosen Paul Atkins, a crypto advocate, as the new head of the Securities and Exchange Commission. David Sachs will serve as the administration’s “crypto czar.”
Trump pledged to make the United States “the cryptocurrency capital of the world.” His government is expected to introduce initiatives that support cryptocurrency startups and the adoption of blockchain technology.
As the United States consolidates its dominance over cryptocurrencies, global markets are watching closely. A pro-crypto administration could turn the United States into a hub for innovation and investment.
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