Crypto and blockchain investments doubled in 2020: KPMG report

According to a brand new report from the Big Four accounting agency KPMG, investments in crypto and blockchain proceed to extend as a consequence of rising investor curiosity.

The examine entitled “Fintech Shock H1 2021” covers world funding exercise in varied fintech verticals in the primary half of this yr. It lists funding transactions made between January and June valued at $ 2,456.98 billion. One of the highest fintech tendencies for 2021 is the explosive development in investments in crypto, electronics and blockchain, the report mentioned.

In the primary six months of 2021, 548 funding actions have been carried out, together with enterprise capital, private fairness, mergers and acquisitions in the blockchain and cryptocurrency sectors. The complete worth of investments in the primary half was $ 8.7 billion, greater than double the entire worth of the 580 investments made in 2020, valued at $ 4.3 billion.

Companies which have raised greater than $ 100 million in funding rounds, together with BlockFi, Paxos, Blockchain.com and Bitso, led the funding quantity.

“Cryptocurrency and blockchain are exploding worldwide,” mentioned Anton Ruddenklau, Co-Head of KPMG Global Fintech.

“So a lot is going on in area proper now, between the eCNY venture in China, Facebook’s Diem, a number of ecosystem initiatives – to not point out all of the completely different trading platforms. Cryptocurrencies and digital belongings are a giant, massive speaking level. I believe for the remainder of this yr at the very least, crypto goes to be a extremely popular ticket for buyers. “

Research shows that raising investor awareness is a key driver of investment growth. Investors now have “a greater understanding not solely of crypto belongings, but additionally of the operational and procedural features of crypto currencies – from safekeeping and storage to safekeeping and competitors.” And the maturity of service providers “.

Related: Which Bear Market? Investors toss report cash behind blockchain corporations in 2021

KPMG forecast in the report that the crypto area will proceed to develop as the excellence between cryptocurrencies and blockchain know-how grows stronger. Non-Changeable Tokens (NFTs), the main focus of the primary half, will assist develop crypto exchanges as NFT-focused trading platforms.

The report is anticipated to proceed to give attention to regulatory frameworks for the rest of the yr. One explicit case, India, will have an effect on all the ecosystem if the nation regulates cryptocurrencies as an asset class in the second half of 2021.