Cryptographic capital financing (VC) is expected to recover this year as regulatory clarity and more favorable policies arise to cryptocurrencies during the mandate of President Donald Trump, said JPMorgan (JPM) in a research report on Wednesday .
The Wall Street bank said the risk financing for the industry has been moderated in recent years. This may be due to the actions of application of the law by the US stock and values commission. UU. (Sec) and the climate of regulatory uncertainty during the previous administration, wrote analysts led by Nikolaos Panigirtzoglou.
It is expected that the beginning of the regulations of the EU cryptoactive (MICA) markets, which entered into force at the end of December, “further reinforce the participation of risk capitalists,” according to the report.
Even so, it is unlikely that the level of financing match the previous peaks observed in 2021/22, JPMorgan said, since cryptographic risk capital companies face a series of challenges.
Traditional finance giants (tradfi) such as Blackrock (BLK) and Franklin Templeton are increasing their participation in the cryptocurrency market, and this leaves less market share for risk capital companies in stable currencies, tokenization and decentralized finance ( Defi), said the bank.
Incipient cryptographic projects are avoiding large tokens sales to risk capitalists and are increasingly resorting to platforms promoted by the community to raise money, the report points out.
The high interest rates also have a challenge for the financing of risk capital, said JPMorgan.
The growth of the products of funds quoted in the stockbroop (ETF) of cryptocurrencies is “inducing a tendency towards passive investment”, and this could be diverting capital of the venture capital companies, adds the report.
Read more: the cryptographic risk capital market remained difficult in 2024, says Galaxy Digital
