The Block: crypto VC fund numbers have risen sharply over the past six years, but total funding is still in the early stages compared to traditional sectors

On 10 September, The Block posted that in 2018 there were only about 50 funds focused primarily on cryptocurrency investments. Today, there are more than 1,150 worldwide. In comparison, there are about 4,000 registered hedge funds in the United States alone and about 30,000 globally.

In terms of venture capital, cryptocurrencies raised more than $72bn between 2018 and 2023, while general venture capital in the US raised more than $600bn over the same period. The balance still leans heavily in favour of traditional venture capital, but also in the early days of tech and other sectors.

While there are high hopes for 2024 (especially with the Bitcoin Spot ETF and its early performance), the year seems more like a transition period. It is important not to compare this cycle to previous ones, as the landscape has changed dramatically.