VC Investments in Crypto Will Double to $18 Billion in 2025: Pitchbook

Venture capitalists will double down on crypto next year, investing more than $18 billion, according to Pitchbook.

That’s almost double the $9.9 billion invested in 2024, according to the VC and private equity database firm’s analysts.

In its 2025 Enterprise Technology Outlook report, Pitchbook analysts said that crypto-focused VC firms will be bolstered by the return of generalist VCs to the blockchain and cryptocurrency space and the involvement of large financial institutions.

While that $18 billion remains “far below the peaks of $24.7 billion in 2021 and $29.8 billion in 2022… [we expect] the involvement of major traditional financial institutions such as BlackRock, Franklin Templeton, and Goldman Sachs to continue bolstering investor confidence in the crypto market,” the report predicted.

Aside from their huge customer bases, these institutions bring legitimacy to the crypto industry and have the potential to accelerate the adoption of digital assets by mainstream investors, Pitchbook said.

They also bring expertise and long-standing relationships with regulators that will position them as “effective intermediaries, navigating compliance and fostering an environment of trust that crypto-native companies often struggle to achieve.”

Return of the Generalists

Generalist VCs will be attracted by the stability of crypto markets, as well as “the approval of regulated financial products such as spot Bitcoin ETFs,” it said.

“The emergence of clearer use cases in areas such as decentralized finance (DeFi), Web3 infrastructure, and consumer-facing applications” will also be a factor.

However, as generalist VCs tend to focus on metrics like recurring revenue, demonstrable traction and pathways to profitability, their return to the sector may shift funding priorities, “emphasizing user-centric innovations and market-ready products over speculative projects” as opposed to traditional crypto metrics like total value locked (TVL) and tokenomics, Pitchbook predicts.

By investing in crypto’s convergence with AI, fintech, traditional finance and other high-growth areas, these generalist VCs will be betting “on crypto as a foundational layer for the next phase of digital transformation,” the report said.

It added that there may be more of an emphasis on higher-dollar, late-stage investments that will result in larger deals and higher valuations. This should boost the number of nine-figure funding rounds.

Combined with strong macro tailwinds like lower interest rates and better global liquidity, crypto will likely see “increased prices across publicly traded tokens, which historically have had a strong positive correlation with VC funding levels,” the analysts concluded.