JPMorgan Predicts Crypto Venture Capital Will Bounce Back This Year – BitRss

JPMorgan has projected that crypto venture capital (VC) financing is expected to recover this year, primarily due to regulatory clarity and more crypto-friendly policies that emerged during President Donald Trump’s administration. The Wall Street bank emphasized that venture financing has been relatively stagnant in recent years, attributing this to the enforcement activities of the U.S. Securities and Exchange Commission (SEC) and the prior administration’s regulatory uncertainty.

Regulatory Developments and Their Impacts

The report noted the anticipation that the European Union’s Markets in Crypto-Assets (MiCA) regulations, which came into effect at the end of December, will further strengthen venture capital participation. JPMorgan indicated that crypto VC firms are facing various challenges and that reaching the funding levels seen in the peaks of 2021 and 2022 is unlikely under the current conditions.

According to JPMorgan, traditional finance giants are increasing their presence in the crypto market, which could reduce market share for VC firms. The report highl…