🚀 Bitcoin’s Meteoric Rise Fuels $10B Crypto VC Frenzy: Best Quarter Since 2022

Wall Street's playing catch-up as crypto VCs deploy capital at 2022 levels—proving once again that institutional FOMO arrives fashionably late to the party.

• Bullish signal: $10B flooded into crypto startups last quarter

• Market makers finally waking up to Bitcoin's 120% YTD gains

• 'Smart money' still buying the dip... just 3 years late

Funny how those same VCs who called crypto 'dead' in 2023 are now writing checks at ATH valuations. The cycle continues—water is wet, and bankers chase momentum.

Crypto VC Roars Back

According to the report shared by CryptoRank, the recovery was driven heavily by June’s $5.14 billion haul. This period witnessed the highest monthly tally since January 2022, following a long period of sluggish deal activity. The sharp uptick aligns with Bitcoin’s rally above $100,000.

During the quarter, major players like Strive Funds, founded by Vivek Ramaswamy, pulled in $750 million for Bitcoin-focused alpha strategies in May. Next up were TwentyOneCapital, which raised $585 million in April, and Securitize, which managed to secure $400 million. Other notable raises included Kalshi, Auradine, ZenMEV, and Digital Asset, which raked in $185 million, $153 million, $140 million, and $135 million, respectively.

The venture capital arm of Coinbase, Coinbase Ventures, emerged as the most active investor. It executed 25 deals in Q2, ahead of Pantera Capital, Animoca Brands, and Andreessen Horowitz.

Meanwhile, Paradigm led in the number of lead investments, while Galaxy Digital closed its first external venture fund at $175 million, surpassing its initial target to back high-growth crypto subsectors, including stablecoins, tokenization, and payment rails. Amsterdam’s Theta Capital also added over $175 million to its fund-of-funds to support early-stage blockchain startups.

Other Trends

CryptoRank’s data also shows that while seed-stage deals still command the largest slice of activity at nearly 19%, strategic and Series A rounds are steadily growing with 14% and 6% respectively.

Interest in M&A is also picking up as distressed opportunities continue to emerge in the sector, with a share of around 10%. The rebound in venture funding comes amid muted memecoin investment trends. In addition to that, monthly crypto fundraising throughout April, May, and June was led by blockchain services, consistently outpacing DeFi and CeFi.