Bitcoin Accumulation and Treasury Strategies May Be Driving Decline in Crypto VC Funding, Galaxy Research

Crypto venture capital slowdown means venture funding into blockchain startups fell sharply in Q2 2025 as investors shift to direct digital asset accumulation and treasury strategies, prioritizing Bitcoin and stablecoins over speculative startup ￰0￱ funding dropped to $1.97B across 378 deals in Q2 2025 Institutional flows favored digital asset treasuries, which raised roughly $15B YTD through Aug. 21 Investor focus moved to Bitcoin accumulation, stablecoin infrastructure, and real-world asset tokenization Crypto venture capital slowdown hits funding: Q2 VC funding declined to $1.97B as investors pivot to treasuries and Bitcoin accumulation — read the VC ￰1￱ is causing the crypto venture capital slowdown?

Crypto venture capital slowdown is driven by investor preference for direct digital asset accumulation and treasury strategies, reduced appetite for early-stage risk, and demand for clearer revenue ￰2￱ Research and Insights4VC data show Q2 VC funding fell significantly while treasuries attracted major capital ￰3￱ Research reported startups raised $1.97 billion across 378 deals in Q2 2025, a 59% decline in funding and a 15% drop in deal count versus ￰4￱ level is the second-lowest quarterly total since Q4 2020. Crypto-focused venture capital has yet to fully reclaim its 2021 highs.) tokenization, a sector attracting strategic capital despite the broader VC ￰5￱ raise follows an earlier $5 million round and highlights continued investor interest in tokenizing physical assets that deliver yield and on-chain ￰6￱ significant was Grvt’s $19 million Series A?

Grvt’s $19 million Series A, co-led by ZKsync, Further Ventures and EigenCloud, funds privacy-preserving onchain finance infrastructure built on ZKsync ￰7￱ company reports growing trading activity; DefiLlama shows rising perpetual futures volumes tied to onchain ￰8￱ is stablecoin infrastructure attracting funding now? Stablecore’s $20 million seed round underscores demand from banks and credit unions for compliant stablecoin ￰9￱ company said regulatory developments such as the US GENIUS Act could accelerate adoption among traditional financial ￰10￱ total stablecoin market capitalization recently topped $300 billion, highlighting sector momentum.