This column was co-written by Frank Chaparro, director of special projects at The Block, and Laura Vidiella of MNNC Group. The views expressed in this column are their own and do not reflect the opinions of their employers.
Summer has come to an end, and while September hasn’t historically been a strong month for crypto, many—including us—were hoping for a more positive start to the final stretch of 2024. The recent jobs report dampened spirits, and the last two weeks of August didn’t fare much better.
However, we like to stay optimistic in this newsletter. Just as investors “zoom out” when short-term charts turn red, let’s take a broader view of the industry as a whole.
Last week, Laura attended Korea
Blockchain Week. While Twitter buzzed with complaints about too many side events spread across distant locations, traffic jams, and community parties lacking a true community feel, the main conference had a strong turnout with high-quality speakers. Laura moderated a panel on the evolving landscape of liquid vs. VC funds with Paola Origel (Hyla Funds), Jack Platts (Hypersphere Ventures), and Kelvin Koh (Spartan Group), highlighting one of 2024's hottest topics.
This brings us to the bigger picture. The funds discussed in the panel have weathered two or even three market cycles. For context: back in 2018, only around 50 funds focused primarily on crypto investments. Today, there are over 1,150 globally. To compare, the U.S. alone has about 4,000 registered hedge funds, with approximately 30,000 worldwide.
On the venture side, between 2018 and 2023, crypto raised over $72 billion, while general U.S. venture capital raised more than $600 billion in the same period. The
balance still tips heavily toward traditional venture capital, but this was also the case in the early days of tech and other industries. Equity remains out of reach for most until it’s publicly traded, and secondary
markets are notoriously tricky.
While 2024 started with high hopes—especially with the
Bitcoin spot ETF and its early performance—the year is shaping up to be more of a transitional period. It’s important not to compare this cycle to previous ones, as the landscape has shifted dramatically.
If you're feeling discouraged, taking a break might help, but zooming out to see the long-term trends may offer an even better perspective.
The Block’s Frank Chaparro serves up the latest headlines, charts, trends, and views on crypto and DeFi from around The Block, Twitter, and The Scoop pod. Subscribe to The Scoop newsletter , which hits inboxes on Tuesday and Friday mornings.
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