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Crypto Funding: KPMG Says Investment Is Slowing, While 21.co Raises $25M, Making It a ‘Double Unicorn’

Crypto investment firm 21Shares’ parent, 21.co, may not be on the same page, but major accounting firm KPMG predicted a slowdown in major crypto funding investments to close out the deal. ‘year.

According to a KPMG report titled Pulse of Fintech H1’22 and released yesterday, venture capitalists invested an estimated $14.2 billion in crypto and blockchain-related businesses in the first half of 2022.

That’s a bit, but interestingly, it’s significantly lower than another H1 fundraising report recently done – by crypto industry research insiders Messari and Dove Metrics.

Their numbers actually pointed to a banner year at the end of June, totaling $30.3 billion in funding across all industry sectors. More than double KPMG’s Reports share.

Aside from this small discrepancy, given current market conditions and the lingering macro fog, Coinhead has no reason to doubt KPMG’s VC investment slowdown prediction.

Well, apart from the fact that we have seen quite a lot of investment so far in the second half of this year. Example :

CoinFund’s US$300 million mega-rise; $200 million from Shima Capital; the $177.6 million business of 776; The increases of $75 million and $45 million from Animoca Brands; Halborn’s $90 million madness; Lattice Capital spends $60 million.

And there are many more that we haven’t quite covered yet. We will endeavor to do another comprehensive roundup of crypto funding soon.

Macro factors to spoil the investment party in 2022, predicts KPMG

KPMG’s report highlights the largest investments in the first half of 2022 coming from Germany-based crypto trading platform Trade Republic ($1.1 billion), digital asset custody platform Fireblocks (550 million), FTX crypto exchange ($500 million) and Ethereum software. ConsenSys ($450 million).

By the way, Google has invested in one of these companies mentioned by KPMG – Fireblocks. In fact, Google’s parent company, Alphabet, has poured at least US$1.5 billion into various crypto companies over the past year.

KPMG’s global fintech leader, Anton Ruddenklau, noted that the investment numbers the accounting firm is using for the first half of 2022 were already more than double any year before 2021, which he said “puts highlight the growing maturity of the space and the breadth of technologies and solutions attracting investment.”

Ruddenklau went on to predict, however, that overinvestment in 2021 and the first half of 2022, along with potential recession, inflation, rising interest rates and war in Eastern Europe, will dampen enthusiasm. investors for the rest of this year.

Crypto company 21.co becomes Switzerland’s largest unicorn

KPMG may be right about the downturn in venture capital as a whole, but in the meantime, back to the positive news from 21.co…

The Zurich-based parent of New York-based crypto investment firm 21Shares has raised $25 million in a funding round it says makes it “Switzerland’s biggest crypto unicorn.”

The round was led by London-based hedge fund Marshall Wace, with participation from Collab+Currency, Quiet Ventures, ETFS Capital and Valor Equity Partners.

“With this round of funding, 21.co will continue to drive rapid and targeted growth through first-of-its-kind products, key market expansions and strategic talent acquisitions,” 21.co said in a statement.

The company’s largest subsidiary, 21Shares, is would have the world’s largest issuer of exchange-traded products (ETPs) of cryptocurrency using its proprietary Onyx platform.

Indeed, as reported Decrypt, Cathie Wood’s Ark Invest has partnered with 21Shares on an app to launch a spot Bitcoin ETF in the US. That request was denied at first instance earlier this year by the Securities Exchange Commission, and more recently received the former “Yeah, we’ll see” on a resubmitted filing.

This has been the story of all BTC spot ETF attempts so far, as anyone who has followed this little crypto subplot over the past year will be fully aware of it.

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