Crypto VC Funding Surges to $4.65B in Q3, Second-Highest Since FTX Collapse

The cryptocurrency venture capital landscape has experienced a remarkable resurgence in the third quarter of 2025, with funding soaring to $4.65 billion. This represents a staggering 290% increase compared to the previous quarter and marks the second-highest investment level since the catastrophic FTX collapse in late 2022 that sent shockwaves through the entire digital asset ecosystem. The dramatic rebound signals a substantial restoration of institutional confidence in the cryptocurrency space, though market activity still remains below the unprecedented peaks witnessed during the 2021 bull market frenzy. The substantial capital influx during Q3 2025 has been strategically concentrated on infrastructure development projects, with particular emphasis on stablecoin technologies, artificial intelligence-integrated blockchain tools, and trading infrastructure enhancements. This targeted investment pattern indicates a maturing market where venture capitalists are prioritizing fundamental technological advancements and sustainable ecosystem growth rather than speculative applications. The infrastructure focus suggests investors are building for long-term viability and mainstream adoption, addressing critical scalability, security, and interoperability challenges that have historically hampered broader cryptocurrency acceptance. The timing of this funding surge is particularly significant as it demonstrates the market's resilience and capacity for recovery following the FTX debacle that had previously eroded investor trust and triggered widespread regulatory scrutiny. The fact that venture capital commitments have reached their second-highest level since that catastrophic event underscores the enduring belief in blockchain technology's transformative potential and the cryptocurrency market's inherent ability to reinvent and strengthen itself through periods of adversity. This renewed institutional interest, coupled with strategic infrastructure investments, positions the sector for more stable and sustainable growth moving forward, potentially setting the stage for the next evolutionary phase in digital asset development and adoption.

Crypto VC Funding Surges to $4.65B in Q3, Second-Highest Since FTX Collapse

Crypto venture capital funding rebounded sharply in the third quarter, reaching $4.65 billion—a 290% increase from Q2 and the second-highest tally since FTX's collapse destabilized markets in late 2022. The surge reflects renewed institutional confidence, though activity remains below 2021's bull market peak.

Capital concentrated on infrastructure plays, with stablecoins, AI-integrated blockchain tools, and trading technology capturing half of all investments through seven major deals. Pre-seed activity dwindled as investors pivoted toward mature startups and liquid instruments like Bitcoin exchange-traded products.

Alex Thorn of Galaxy Digital notes the resurgence defies bearish expectations, signaling enduring appetite for digital asset innovation. The rebound follows a prolonged funding winter after FTX's fraud exposed systemic vulnerabilities in 2022.

Robinhood and Susquehanna Acquire LedgerX to Expand into Crypto Prediction Markets

Robinhood Markets and Susquehanna Group have struck a deal to acquire 90% of LedgerX, a regulated crypto derivatives exchange, from Miami International Holdings. The move signals Robinhood's deepening foray into event-driven crypto markets as demand for prediction platforms grows.

The partners will operate LedgerX as an independent exchange through a new joint venture, with Robinhood as the controlling stakeholder. Miami International will retain a 10% strategic stake. Financial terms remain undisclosed.

LedgerX, once part of the collapsed FTX empire, was acquired by Miami International for $50 million during FTX's bankruptcy proceedings. The deal includes MIAXdx, a LedgerX entity with key regulatory approvals, providing Robinhood and Susquehanna with an established compliance framework.

The acquisition paves the way for Robinhood to launch a futures and derivatives exchange, marking a strategic expansion into prediction markets. "This positions us to deliver innovative products to our customers," Robinhood stated.

Singapore Shifts Focus from Crypto Volatility to Institutional Tokenization

Singapore's Monetary Authority (MAS) is steering its digital finance strategy toward institutional tokenization, marking a deliberate retreat from the retail crypto frenzy that once defined its market. The pivot follows heavy losses from high-profile crypto collapses, including Temasek Holdings' $275 million exposure to FTX and the $8 billion implosion of Three Arrows Capital.

Next year's planned issuance of tokenized government bills—settled in wholesale central bank digital currency (CBDC)—signals MAS's ambition to anchor Singapore's digital asset future in regulated, institution-grade infrastructure. "The 'everyone-can-try-crypto' era in Singapore has ended," observes Dr. Cheryl Wang of the Global Fintech Institute, noting the city-state now courts established financial players rather than speculative trading platforms.