Home Cryptocurrency Private equity’s appetite for cryptocurrency slides

Private equity’s appetite for cryptocurrency slides

by WOOWinvest
0 comment
Private equity’s appetite for cryptocurrency slides

Private equity’s foray into cryptocurrency is waning after a tumultuous year for the digital asset class.

PE houses, venture capital firms and institutional investors deployed roughly $13.65bn into decentralized finance (DeFi) and cryptocurrency in 2021, marking almost a five-fold increase on the previous year, according to S&P Global.

However, the ratings agency said that investment hit a peak in the first quarter of 2022, reaching just over $5bn.

The second quarter saw investments slide to $2.94bn, marking a fall of nearly 42% from the previous quarter.

In the third quarter, investment then slipped to just under $1.58bn, and in the fourth quarter-to-date up to 15 December, the volume had fallen to around $918m.

“Investments continued to sink lower in the third quarter, a trend that appeared likely to hold in the fourth quarter,” S&P Global said.

The data comes as the cryptocurrency industry faces fresh uncertainty following the collapse of the crypto exchange FTX in early November.

READ MORE: SBF vs The US, and the year in crypto

Private equity and VC investors including software buyout giant Thoma Bravo were among those that reportedly invested in FTX.

The Wall Street Journal reported that Thoma Bravo invested $130m in FTX Trading Ltd., the owner and operator of cryptocurrency exchange FTX.com, in July 2021, citing a person familiar with the matter.

To contact the author of this story with feedback or news, email Sebastian McCarthy

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News


Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy