Nearly half of all venture capital (VC) funding in crypto during Q4 2024 went to U.S.-based startups. Galaxy Digital’s Crypto and Blockchain Venture Capital report, filed on January 15, 2025, revealed this trend.
U.S. VC Firms Lead in Q4
The report showed 46% of global VC funds were directed to U.S. firms. Hong Kong ranked second with 16%, while Singapore and the UK captured 9% and 8%, respectively. The U.S. also led in deal count, accounting for 36% of all VC transactions globally.
Ryan McMillin, Chief Investment Officer at Merkle Tree Capital, attributed this dominance to the U.S.’s mature financial ecosystem. He said optimism about Donald Trump’s incoming pro-crypto administration fueled investments.
“There’s a deep pool of venture capitalists and limited partners in the U.S.,” McMillin noted. “The 46% increase in Q4 reflects anticipation of a pro-crypto government.”
Trump’s inauguration is set for January 20, 2025. His administration promises to make the U.S. a global crypto leader. Hundreds of pro-crypto candidates also won seats in Congress.
Galaxy Digital’s Report
Galaxy Digital’s Head of Research, Alex Thorn, expects U.S. dominance to grow further. “A supportive administration could finalize stablecoin frameworks and market structures,” he said. “This will open the doors for traditional financial firms to enter crypto.”
However, regulatory uncertainty remains a hurdle. The SEC has targeted crypto firms aggressively, issuing $8.2 billion in penalties in 2024. Yet, enforcement cases fell by 26% compared to the previous year.
Leadership changes at the SEC could alter this. Trump has chosen Paul Atkins, a crypto advocate, as the new SEC head. David Sachs will serve as the administration’s “Crypto Czar.”
Trump has pledged to make the U.S. the “crypto capital of the world.” His government is expected to introduce initiatives supporting crypto startups and blockchain adoption.
As the U.S. strengthens its crypto dominance, global markets watch closely. A pro-crypto administration may transform the U.S. into a hub for innovation and investment.
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Source: https://thenewscrypto.com/46-of-crypto-vc-funding-went-to-u-s-startups-in-q4-with-trump-set-to-boost/