Record crypto and blockchain investments in 2021 have already exceeded last year’s total as institutions warm up, KPMG data shows

Replica bitcoins are seen in this photo illustration on November 4, 2017.

Cryptocurrency and blockchain investments in 2021 have already exceeded last year’s record full-year total, new data from KPMG show.

The total global investment activity in blockchain and cryptocurrency for the first half of 2021 totaled $8.7 million, more than twice 2020’s figure. Thus far, the year ending on June 30 has seen 548 investments activities, including venture capital, private equity, and mergers and acquisitions.

“A significant amount of institutional money flowed into the crypto space, highlighting the broadening of the investor base,” the report said. “Investor awareness and knowledge of the sector is growing.”

Screenshot: Total global investment activity (VC, PE and M&A) in blockchain & cryptocurrency 2018-2021*
Total global investment activity (VC, PE, M&A) in blockchain & cryptocurrency 2018-2021* KPMG

KPMG’s recent 78-page report, titled “Pulse of Fintech H1 2021,” looked into various global investment activities for the first half of the year, detailing 2,456 investment deals worth $98 billion. Among the burgeoning sectors were cryptocurrencies and blockchain, the report said.

The firm found that investors now have a deeper understanding of what crypto assets are and have evolved into operational and procedural aspects of digital assets from custody to storekeeping.

Beyond having a fuller comprehension of the space, the report also found two factors that have driven the surge in investments: venture capital and NFTs.

VC investment in the crypto and blockchain space was “very strong,” the report found, with several companies raising multiple $100 million funding rounds. The notable ones the study highlighted were BlockFi ($350 million), Paxos ($300 million), Blockchain.com ($300 million), and Bitso ($250 million).

NFT interest also contributed to the spike, the report added.

“Interest in non-fungible tokens is beginning to gain more traction, with interest in a whole range of new types of assets, ranging from professional real estate to more fragile assets which can be tokenized or fractionalized,” the report said.

Ahead, KPMG said it expects continued growth of the cryptocurrency space, further focus on regulatory frameworks, and the evolution of exchanges focused on areas such as NFTs.