Crypto startups are poised to gain $12 billion from venture capital investments this year, according to DL News, with the sector already recording $5.5 billion in investments so far in 2024.

Last year, crypto startups raised $8.2 billion, but experts predict that 2024 will be a banner year in startup funding for the crypto industry, thanks to pro-crypto policies espoused by 2024 Republican presidential nominee and former president Donald Trump. Representatives from the Democratic Party have also made behind-the-scenes overtures to the crypto industry in recent weeks, fueling speculation that crypto might see more favorable policies in the coming years. If regulations supporting the digital asset sector come to pass, innovation is likely to flower in the U.S., experts say, bringing new opportunities – and a surge of fresh capital – to the nascent crypto industry.

Other positive factors include the Federal Reserve’s possibility of slashing interest rates and the January debut of spot bitcoin exchange-traded funds (ETFs), which have recorded net inflows exceeding $17 billion. Ethereum ETFs have also arrived onto the scene, logging trading volumes of more than $4 billion during their first week alone.

Crypto firms in North America have secured $3.1 billion of the total funding, representing more than half of all investment – a 50% increase from last year. In Asia and Europe, investments in crypto firms totaled $1.2 billion. Elsewhere, crypto startups in Australia received $40 million while firms in South America acquired $30 million worth of investment.

“America dominates global innovation, harboring the largest capital markets and facilitating investment into growing, nascent industries such as crypto and AI,” Joshua de Vos, research lead at CCData, a crypto data provider, told DL News.