Investors now have a better understanding not only about crypto assets but additionally the operational and procedural aspects of crypto, a new report states.
Crypto and blockchain investments continue to grow thanks to the ever-rising investor curiosity, in line with a new report from Large Four accounting firm KPMG.
Titled “Pulse of Fintech H1 2021,” the research covers world funding actions in several financial expertise verticals for the primary half of the year. It particulars 2,456 investment deals value $98 billion made between January and June. One of the high fintech trends for 2021 is the explosive growth within the crypto and blockchain investments, the report reads.
The first six months of 2021 saw 548 investments actions, together with enterprise capitals, private equities, and mergers and acquisitions within the blockchain and cryptocurrency sectors. The overall worth of investments through the first half of the year is $8.7 billion, already doubling the overall worth of 580 funding offers made throughout 2020, worth $4.3 billion.
Companies that raised more than $100 million in funding rounds, including BlockFi, Paxos, Blockchain.com and Bitso, led the expansion in funding quantity.
“Cryptocurrency and blockchain are exploding globally,” mentioned KPMG Global Fintech co-leader Anton Ruddenklau, including:
“There’s so much happening in the space right now, between the eCNY undertaking operating in China, Facebook’s Diem, a variety of ecosystem initiatives — to not point out all of the completely different buying and selling platforms elevating cash. Digital currencies and digital assets are a giant, big topic of conversation. I believe for the remainder of this 12 months not less than, crypto might be a highly regarded ticket for traders.”
The research factors to rising investor consciousness as a key driver of the expansion in funding. Buyers now have “a greater understanding not only about crypto assets but additionally the operational and procedural side of crypto — from custody and storage to storekeeping and the competitiveness and maturity of service suppliers.”
KPMG predicted within the report that the cryptocurrency space would continue to mature while the excellence between cryptocurrencies and blockchain technologies would get stronger. Nonfungible tokens (NFTs), a key focus during the first half, would contribute to the evolution of crypto exchanges within the form of NFT-focused trading platforms.
The report expects an additional deal with regulatory frameworks for the rest of the year. One specific case, India, would impact the entire ecosystem should it regulate cryptocurrencies as an asset class in the second half of 2021.