Crypto Venture Capital Investment Slowed Further in October: JPMorgan

As the bear market persists, the current pace of capital flows has slowed to less than one-third of 2021 levels.

AccessTimeIconNov 8, 2022 at 2:11 p.m. UTC
Updated May 9, 2023 at 4:01 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

October data showed a continued deceleration in the pace of crypto venture capital investment to under $1 billion a month, JPMorgan said in a research report last Thursday.

The downtrend began last May following the Terra collapse, said the report authors led by Nikolaos Panigirtzoglou, and the weak October numbers suggest more than just a seasonal summer slowdown.

The current level of venture capital investment of $500 million to $1 billion per month gives an annual rate of almost $10 billion, which is less than one-third of last year’s pace, they wrote.

Panigirtzoglou called it a worrying development as it shows an unwillingness by venture capital funds to deploy capital in the digital assets sector. He believes it increases the likelihood that the current weakness in cryptocurrency markets may be here for some time.

He also said other metrics such as sluggish bitcoin (BTC) and ether (ETH) exchange-traded-fund flows point to persistent weakness.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Author placeholder image

Will Canny is CoinDesk's finance reporter.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about