Four Crypto VCs on What Will Drive an $18 Billion Investment Frenzy in 2025

Venture capital investments are set to return with force in 2025.
According to VC firms and market watchers, significant developments are expected to drive this renewed interest in the crypto sector. Here’s what the experts are saying:

Mike Giampapa, General Partner, Galaxy Ventures
With the most pro-crypto executive and legislative branches in U.S. history coming into power, the crypto industry is poised for significant growth. A more favorable SEC will likely mean fewer enforcement actions, clearer regulations, and better opportunities for blockchain businesses to go public in the U.S.

Banks are expected to become more open to engaging with crypto. The introduction of stablecoin legislation and a broader crypto market infrastructure bill could foster transparency and protections for entrepreneurs and users alike.

Stablecoin adoption and blockchain integration in financial services are anticipated to accelerate. Fintech companies will increasingly incorporate crypto rails to deliver faster, cheaper, and more efficient services. Merchant acquirers and card networks may further enable crypto payments, allowing stablecoin transactions to become as seamless as fiat payments.

Alex Botte, Partner, Hack VC
Venture capital investment in crypto and blockchain is expected to surge back toward previous highs in 2025. While current investment levels remain below the peaks of early 2022, market cycles suggest a rebound is imminent.

Improved regulatory clarity under the pro-crypto U.S. administration is likely to attract more institutional investors. This renewed confidence could drive VC capital to surpass previous records, fueled by greater institutional and traditional VC involvement.

Robert Le, Crypto Analyst, Pitchbook
In 2025, total VC funding for crypto is forecasted to exceed $18 billion, with multiple quarters surpassing $5 billion in funding. Institutional adoption and macroeconomic stabilization will be key drivers.

Traditional financial players like BlackRock and Goldman Sachs are expected to deepen their engagement, enhancing confidence and regulatory trust. This, in turn, could pave the way for broader adoption and attract asset managers, hedge funds, and sovereign wealth funds.

A focus on startups with solid fundamentals—like recurring revenue and measurable traction—will gain prominence, as VCs prioritize sustainable growth over speculation. Convergence with AI, fintech, and traditional finance may further amplify this growth.

Karl Martin Ahrend, Founding Partner, Areta
The crypto space in 2025 is likely to see a surge in mergers, acquisitions, and IPOs. Traditional financial institutions are seeking exposure to crypto but often lack the expertise to build solutions internally, driving strategic partnerships and acquisitions.

Regulatory clarity and advancements in security are expected to bolster investor confidence. This favorable environment is set to pave the way for more public offerings and strategic deals, marking a transformative period for the industry.

BitGalactic’s Perspective

The insights shared paint a highly optimistic picture for 2025, but caution is warranted. While institutional adoption and regulatory clarity are essential drivers, the pace of macroeconomic recovery and the global geopolitical landscape will also play critical roles.

BitGalactic believes that the convergence of crypto with emerging technologies like AI will be a game-changer. However, the industry must avoid over-reliance on speculative bubbles and focus on building real-world utility to ensure sustainable growth.

This frenzy may indeed materialize, but only time will reveal whether it brings lasting progress or fleeting hype.