Big Four auditor KPMG says that institutional investors put a “significant amount” of money into blockchain and cryptocurrencies during the first half of 2021.
In a new report, KPMG says growing institutional investor participation is part of a widespread increase in the awareness of crypto assets and the digital asset industry at large.
“As the blockchain and crypto sector has matured, so has the nature of its investors. In H1’21, a significant amount of institutional money flowed into the crypto space, highlighting the broadening of the investor base.
Investor awareness and knowledge of the sector is growing, with investors now having a much better understanding not only about 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.”
The accounting firm says that in the first half of 2021, the total global investment in blockchain and crypto reached $8.7 billion. This figure is more than double the $4.3 billion worth of investments made in the space in 2020, and exceeds the all-time annual record previously set in 2018, according to KPMG.
“Investment in blockchain and cryptocurrencies heated up dramatically in H1’21, with investment more than twice the level seen in 2020 and soaring past the previous annual record high set in 2018.”
In 2018, $7.2 billion was invested in the crypto space, according to KPMG.
The Big Four accounting firm further says that venture capital participation was heavy during the first half of this year, with various crypto startups managing to raise nine-figure sums.
“VC investment was very strong in the blockchain and crypto space. Numerous companies raised $100 million+ funding rounds, including BlockFi ($350 million), Paxos ($300 million), Blockchain.com ($300 million) and Bitso ($250 million).”
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The post Here’s Why Institutional Investment in Crypto Is Heating Up Dramatically, According to Big Four Auditor KPMG appeared first on The Daily Hodl.
