Venture capital returns: crypto investments skyrocket 290%

After a long period of reluctance, the investment world seems to be showing interest in crypto companies again. New figures show that venture capitalists are carefully turning their gaze towards the innovative sector again.

Confidence in crypto is returning

According to figures from Galaxy Digital, venture capitalists’ confidence in crypto is slowly returning. In the third quarter of 2025, $4.65 billion was invested in crypto companies, a 290 percent increase from the previous quarter. This means that the sector has recorded the strongest investment quarter since the collapse of the crypto exchange FTX in 2022.

The investments were spread over 415 deals, ranging from young startups to large financing rounds. It is striking that seven deals together accounted for half of the total amount. For example, Revolut raised $1 billion, while crypto exchange Kraken managed to attract $500 million, good for a valuation of $15 billion. Other major recipients of capital include Erebor ($250 million), Treasury ($146 million) and Fnality ($135 million).

The United States remains the center of gravity for crypto investments. In Q3, 47 percent of capital went to American companies. Also, 40 percent of all deals took place in the US.

The United Kingdom follows at a distance with 28 percent of investments. In Asia, Singapore managed to attract 3.8 percent of the capital. Remarkably, the Netherlands also appeared on the list, with 3.3 percent of total investments.

Institutional adoption of crypto is gaining momentum

There appear to be several reasons why venture capital is getting involved again. First of all, there is increasing regulatory clarity. Major steps have recently been taken, especially in the United States. For example, last summer Donald Trump signed the so-called Genius Act, a law that provides clear frameworks for the issuance of stablecoins. The law sets requirements for reserves, supervision and transparency, among other things, making it safer for large parties to invest in the sector.

We also see a clear acceleration in the institutional adoption of crypto. More and more companies are building strategic reserves in digital assets. For example, listed companies now own 1.06 million Bitcoin (BTC), accounting for 5.3 percent of the current circulating supply with a total value of approximately $92 billion.

In addition, there has been a noticeable increase in Ethereum (ETH) reserves this year. A total of 68 public companies together hold 6.36 million ETH. That represents a value of about $18.5 billion and amounts to 5.2 percent of Ethereum’s total circulating supply.

Finally, US spot exchange-traded funds (ETFs) remain popular despite recent losses. A significant part of the inflow comes from institutional parties, because these funds provide them with an accessible and regulated way to invest in crypto. According to data from blockchain analysis platform CoinGlass, Bitcoin ETFs now collectively manage around $121.5 billion. For Ethereum, that amount is $17.4 billion.