Crypto Market Roars Back: Investor Confidence Hits Fever Pitch in 2025

Wall Street's latest love affair? Digital assets—again. After years of regulatory whiplash and 'crypto winters,' institutional money is flooding back into Bitcoin and altcoins like a bull stampede.

The smart money's betting big

Hedge funds that once mocked memecoins are now quietly accumulating positions. Family offices that swore off NFTs post-2022 crash? Suddenly 'reassessing blockchain exposure.' Even pension funds—yes, those pension funds—are dipping toes through Bitcoin ETFs.

Retail FOMO returns with a vengeance

Main Street investors aren't just buying the dip—they're levering up. Derivatives volume on major exchanges smashed records last quarter. Memecoin trading? Up 300% since January (because apparently we learned nothing from Dogecoin).

The cynical take

Somewhere in Connecticut, a hedge fund manager is explaining to his limited partners why this time is different—while secretly praying the Fed cuts rates before his overleveraged Solana positions implode. The more things change...

In Brief

• Institutional investors are making a notable comeback with $10.03 billion raised in crypto in the second quarter.
• June 2025 alone represents more than half of the invested amounts, with $5.14 billion, a monthly record since January 2022.
• Spectacular fundraisings like those of Strive Funds ($750M), TwentyOneCapital ($585M), and Securitize ($400M) dominate this quarter.
• The most funded sectors are blockchain infrastructure and DeFi, while memecoins remain on the sidelines.

Billions of Dollars in the Crypto Ecosystem

Big deals have been made in the crypto ecosystem, despite the market cooling. Between April and June 2025, crypto startups raised $10.03 billion according to CryptoRank data, marking their best performance since the first quarter of 2022, when the amount reached $16.64 billion. This surge came after a prolonged period of venture capital fatigue in the sector.

June proved particularly significant, with $5.14 billion raised alone, an unprecedented monthly level since January 2022. This sudden rebound demonstrates a renewed appetite among institutional investors, especially in segments considered fundamental.

Among the most spectacular fundraisings is that of Strive Funds, launched by American businessman Vivek Ramaswamy, which secured $750 million in May to deploy investment strategies related to bitcoin. In April, TwentyOneCapital attracted $585 million, while Securitize closed a $400 million round.

Behind these numbers, clear and quantifiable trends emerge about the current market structure :

• Monthly record fundraising in June with $5.14 billion invested ;
• The three largest fundraisings of the quarter : Strive Funds ($750M), TwentyOneCapital ($585M), Securitize ($400M) ;
• Other notable fundraises : Kalshi ($185M), Auradine ($153M), ZenMEV ($140M), Digital Asset ($135M).

This overview illustrates a targeted reactivation of venture capital, where funds prioritize projects seen as fundamental for Web3 infrastructure, while applying more rigorous selection. The figures reflect a long-term bet, not mere short-term speculation.

Coinbase Ventures and Venture Capital Giants Pave the Way

While the amounts raised attract attention, the profile of investors involved provides equally revealing insights into ongoing dynamics. With 25 investments made during the quarter, Coinbase Ventures established itself as the most active player during this period, confirming its central role in shaping the crypto landscape.

June saw it dominate once again, with 10 deals closed, ahead of Pantera Capital (8), Galaxy (5), and Paradigm, which stood out for the highest number of lead investments. Other notable players include Animoca Brands, a16z, Cyber Fund, and GSR, all engaged in medium- and long-term strategies.

Several major moves also highlight the diversity of approaches adopted by these funds. The successful launch of Galaxy Digital’s first external fund, which raised $175 million in June, illustrates this desire to redirect investments toward segments seen as structural: stablecoins, asset tokenization, payments, and infrastructure.

Meanwhile, Dutch firm THETA Capital Management raised over $175 million to support early-stage blockchain startups, emphasizing Europe’s growing importance in new financing strategies.

These operations fit into a strategy to pre-empt the future pillars of Web3, through targeted bets on infrastructure and programmable finance solutions.

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