JPMorgan, crypto venture capital (VC) financing this year, US President Donald Trump, the regulatory clarity and more crypto -friendly policies expected to recover.
Regulatory developments and effects
Wall Street Bank pointed out that the initiative financing for the sector has been calm in recent years. Analysts thought that this was due to the implementation activities of the US Securities and Stock Exchange Commission (SEC) and the regulatory uncertainty of the previous administration.
The Crypto Asset Markets (Mis) regulations of the European Union, which came into force at the end of December, are expected to strengthen the participation of enterprise capital.
JPMorgan said that crypto venture capital companies face various challenges and that the financing level is not possible under the current conditions to capture the summits of 2021/22.
“Traditional financial giants increase their participation in the crypto market, which reduces market share for VC companies.” -Jpmorgan.
The report stated that new crypto projects avoid large token sales and increasingly turned to community -oriented platforms.
High interest rates also constitute an obstacle for initiative capital financing. The growth of crypto stock exchange investment fund (ETF) products causes a trend towards passive investment, which can lead to the development of capital from VC companies.
Change in Market Dynamics
JPMorgan, Market’s general situation in his assessment, the interest of large financial institutions to the crypto market, the initiative capital firms can reduce the competitiveness of the competitiveness stressed. On the other hand, Trump, who puts the head to remove the obstacles between crypto currencies and major financial institutions, is likely to take more steps this year.
In the light of these developments, crypto venture capital financing is expected to revive, but it is expected that it will be difficult to reach the levels of the previous periods.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
