The world of cryptocurrencies has seen unprecedented growth in recent years. Proof of this is the growth that has had its adoption and individual assessment. The volatility for which large cryptocurrencies like Bitcoin are criticized is precisely what attracts many to invest in it. Therefore, venture capital funds have not been the exception, and already make large investments in cryptocurrencies.
Venture capital funds have already invested $ 17 billion this year in companies operating in the cryptocurrency space. This according to the PitchBook data provider. It is by far the largest amount in a single year and almost equal to the total amount raised in all previous years combined. Bullish Global’s highest grossing of 10,000 million dollars in the history of the sector.
Why do venture capital funds invest in cryptocurrencies? How?
But let’s talk about where this money came from. You’d be surprised to know that much of that investment came in one deal. In May, Block.one, injected US$ 10 billion in digital assets and cash into Bullish Global. This company is a blockchain software company whose longtime sponsors include billionaires Peter Thiel, Alan Howard and others. Bullish Global is a new cryptocurrency exchange. At that time, the company also raised US$ 300 million in an additional funding round.
The interesting thing is that that investment alone would have made 2021 the largest year for venture capital investment in the cryptocurrency space. But even ignoring Bullish Global’s capitalization, the remaining$ 7.2 billion they have entered would already be on par with the previous record of $ 7.4 billion raised in 2018. This considering that there are still six months to end the year.
Other large investments
Another major cryptocurrency investment came from Ledger SAS, the manufacturer of hardware wallets for Bitcoin and other cryptocurrencies. This company had the second largest loot so far this year when it raised US $ 380 million from sponsors led by 10T Holdings.
“I am of the opinion that everyone will have cryptocurrencies, it’s just a matter of what price they get,” said Ian Rogers, director of experience at Ledger. “We are still in the protocol phase, we know there is something here, you just can’t imagine how it will look exactly,” he added.