Crypto startups are poised to surpass the $8.2 billion raised in 2023, with projections indicating over $12 billion in venture capital inflows this year. According to data from PitchBook, industry projects have already secured more than $5.5 billion in 2024, signaling robust investor confidence and a thriving crypto market.

Potential Trump Victory Boosts Investor Sentiment

The upcoming U.S. election could significantly amplify venture capital investment in the crypto sector, especially in North America, which has garnered more than half of all funding. A victory for pro-crypto candidate Donald Trump is expected to catalyze a bullish investment trend.

“Should Trump win the presidential election, we might see an acceleration of VC funding into crypto,” stated Joshua de Vos, research lead at digital asset data provider CCData. “The removal of current administrative uncertainties could lead to clearer regulations, new opportunities, and enhanced funding and tax breaks.”

Strong Tailwinds Bolster Industry Confidence

Several favorable factors have contributed to the optimistic outlook for the crypto industry in 2024. The launch of spot Bitcoin and Ethereum exchange-traded funds and indications that the Federal Reserve may reduce interest rates have strengthened the narrative of an impending bull market.

Read more: Top 5 Israeli Crypto Blockchain Startups Securing Major Funding in 2024

Regional Breakdown of Funding

North American crypto startups have outpaced those in other regions, securing the lion’s share of global funding. According to PitchBook data, the continent’s crypto companies have captured 56% (or $3.1 billion) of all global funding thus far in 2024, up from nearly 50% in 2023.

“America dominates global innovation, harboring the largest capital markets and facilitating investment into growing, nascent industries such as crypto and AI,” remarked de Vos.

Regional Breakdown of Funding

While North America leads, Europe and Asia are tied for second place, with projects in both regions receiving $1.2 billion each this year. Australian and South American startups have secured $40 million and $30 million, respectively.

Election and Crypto: A Key Issue

The U.S. election, characterized by criminal convictions, an assassination attempt, and incumbent Joe Biden’s withdrawal from the race, has seen the crypto industry emerge as a significant topic. While Biden’s heir-apparent, Vice President Kamala Harris, has taken no public stance on the sector, Trump has positioned himself as a crypto ally.

He has pledged to create a national Bitcoin reserve and remove SEC Chair Gary Gensler, who has been aggressive in his enforcement actions against crypto firms. These promises have garnered Trump considerable support within the industry.