The new report by the Big Four KPMG, “Pulse of Fintech H1 2021”, reveals that investments in crypto and blockchain continued to grow in the first half of this year.
In fact, according to the report, among global fintech investments in the period from January to June 2021, the explosive growth is reported by the crypto and blockchain sector.
Specifically, there were 548 investment assets, including venture capital, private equity, mergers and acquisitions in the blockchain and cryptocurrency sectors. Not only that, the data shows that the value of investment deals in the crypto sector in these first six months of 2021, was $8.7 billion.
This is an important figure if we consider that for the second half of 2020, it was $4.3 billion. Thus, the first half of 2021 closed with twice as much capital invested in crypto and blockchain as the previous six months.
Among the names of companies that have raised more than $100 million in their funding rounds is BlockFi, which launched its Bitcoin Trust in February this year.
The financial services company offered its Bitcoin Trust at lower rates than the famous Grayscale Bitcoin Trust, adding products linked to the price of BTC for institutional investors as well.
Paxos, Bitso and Blockchain.com have also raised more than $100 million in this semester of 2021.
KPMG and investments in crypto and blockchain
Looking at the current booming data on crypto investments, KPMG has predicted that this sector will continue to expand but also change.
Indeed, with the explosive interest in Non-Fungible Tokens (NFT) this first half of the year, KPMG predicts that the evolution of exchanges following this market will become stronger. Some sort of new marketplace or trading platform for NFTs.
This is something Paolo Barrai of TerraBitcoin had suggested when he said that the future of crypto will see NFTs as a new medium for bartering.
Not only that, the same report also predicts new regulatory focus for the rest of the year, considering that just yesterday, the US Senate passed the Infrastructure Bill, the new, more stringent tax regulations for all crypto players in the US.
As far as India is concerned, KPMG highlighted the impact on the entire ecosystem if cryptocurrencies were to be regulated as an asset class in the second half of 2021.