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KPMG has launched a study, Pulse of Fintech Study, which highlighted the rising investment in crypto and blockchain in the first half of this year.
KPMG’s Pulse of Fintech Study revealed that the investment done by Venture capital in blockchain and cryptocurrencies in 2021 was more than double as compared to 2020.
The bi-annual document highlighted that the funding in blockchain and cryptocurrencies within the first 1/2 of this 12 months beat the preceding annual report from 2018.
Growing institutional interest
The report also highlighted the institutional growing interest in cryptocurrency and the significant amount of institutional money flowing into the crypto space. It will see the expansion of the investor base.
According to the study, the knowledge of the sector is growing and investor engagement is also on the rise. The investors have much understanding about the crypto space along with the operational and procedural side of crypto. The investors are equipped with the knowledge from custody, storage to storekeeping and the competitiveness and maturity of service providers.
Many firms have raised more than $100 million in funding rounds. BlockFi funded $350mn, Paxis $300m, blockchain.com $300m, and Bitso $250m.
NFTs a big investment
None fungible tokens (NFTs) are also getting the attention of investors. It will allow trading in new or previously illiquid asset classes, like real estate or art.
As per the study, the crypto space will evolve and be mature by the end of this year. There will be a stronger separation between cryptocurrencies and blockchain technologies, further focus on regulatory frameworks and the evolution of exchanges centred on regions which includes NFTs.
Regulatory technology firms are showing their increasing interest in the sector. For example, Bullish Capital invested a huge amount to develop a blockchain-based cryptocurrency exchange platform that blends the performance, consumer privateness and compliance advantages of vital order book technology with the consumer advantages of decentralized finance.
Investment in Fintech
Global Venture Capital had invested in fintech which reached a record $52.3bn in the same period last year.
Fintech investment in the US reached $41.2 billion in the first half of 2021 and the Venture Capital investment reached $25 bn.
Some of the big deals that happened were $3.4bn raised by Robinhood, $600mn raised by Stripe, and $500mn raised by Better Sevice Titan and DailyPay.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
