Crypto and blockchain investments already doubled in 2020: KPMG report

Crypto and blockchain investments continue to grow thanks to ever-growing investor interest, new report says report of the accounting fi...



Crypto and blockchain investments continue to grow thanks to ever-growing investor interest, new report says report of the accounting firm of the four big KPMGs.

Entitled “Pulse of Fintech H1 2021”, the study covers global investment activities in different FinTech verticals for the first half of the year. It details 2,456 investment agreements worth $ 98 billion concluded between January and June. One of the top fintech trends for 2021 is the explosive growth in crypto and blockchain investments, the report says.

The first six months of 2021 saw 548 investing activity, including venture capital, private equity, and mergers and acquisitions in the blockchain and cryptocurrency industries. The total value of investments in the first half of the year is $ 8.7 billion, already doubling the total value of the 580 investment deals concluded in 2020, worth $ 4.3 billion.

Companies that have raised more than $ 100 million in funding rounds, including BlockFi, Paxos, Blockchain.com and Bitso, led the growth in investment volume.

“Cryptocurrency and blockchain are exploding globally,” said Anton Ruddenklau, co-leader of KPMG Global Fintech, adding:

“There’s so much going on in space right now, between the ongoing eCNY project in China, Facebook’s Diem, a number of ecosystem initiatives – not to mention all of the different trading platforms that raise funds. Digital currencies and virtual assets are a big, big topic of conversation. I think for the rest of this year at least, crypto will be a very hot ticket for investors. “

The study indicates that increasing investor awareness is one of the main drivers of investment growth. Investors now have “a better understanding of not only crypto assets, but also the operational and procedural side of crypto – from custody and storage to storekeeping and the competitiveness and maturity of service providers.”

Related: What bear market? Investors throw record amount behind blockchain companies in 2021

KPMG predicted in the report that the cryptocurrency space will continue to mature as the distinction between cryptocurrencies and blockchain technologies becomes stronger. Non-fungible tokens (NFTs), a key focus in the first half of the year, are said to help the evolution of crypto exchanges in the form of NFT-focused trading platforms.

The report expects more emphasis to be placed on regulatory frameworks for the remainder of the year. One specific case, India, would impact the entire ecosystem if it regulated cryptocurrencies as an asset class in the second half of 2021.