The increasing regulatory scrutiny has clamed down with the recent XRP victory against the SEC. A recent report reveals that nearly half of all capital investments are being directed toward American crypto businesses, emphasizing their appeal to investors.
According to the July 14th report by Galaxy Digital, a leading crypto investment firm, there is significant interest demonstrated by venture capital (VC) firms in cryptocurrency startups based in the United States.
The report cites, “US-based crypto startups accounted for more than 43% of all deals completed and raised more than 45% of the capital invested by VC firms.”
In terms of capital investment distribution, the United Kingdom received 7.7% of the funds, followed by Singapore with 5.7% and South Korea with 5.4%.
However, it is important to note that the total capital invested in crypto and blockchain startups has consistently declined on a quarterly basis. The report also highlighted that only $720 million was raised by 10 new crypto venture capital (VC) funds in the second quarter of 2023. This marks the lowest amount since the COVID-19 pandemic began in the first quarter of 2020.
Furthermore, the report highlighted an important trend, noting that crypto and blockchain startups have raised less capital over the past three quarters combined compared to just the second quarter of the previous year.
Additionally, it was observed that companies categorized under the “broad Web3 category” saw a higher number of deals, while companies classified under “trading” managed to secure more capital.
These developments occur in the context of increased regulatory actions by the United States Securities and Exchange Commission (SEC) against various crypto firms in recent times.
A notable case between the SEC and Ripple Labs on July 13 resulted in a partial victory for Ripple Labs. The judge ruled that XRP, when traded on digital asset exchange, is not considered a security.
The verdict has brought about positive sentiments in the crypto industry with experts believing the Web3, blockchain, and crypto industry will soon get a surge in business.
