KEY POINTS

  • Crypto firms have raised over $2 billion this year
  • This comes even as crypto market is in its winter phase
  • FTX exchange raised $400 million in late January

Despite a major slump in digital asset prices amid 'crypto winter,' venture capital firms have invested well over $2 billion into crypto startups so far this year, Markets Insider estimated.

Bahamian-based crypto exchange FTX has led the way as it raised $400 million in late January, valuing the business at a staggering $32 billion. This came shortly after its U.S. arm raised $400 million, for a valuation of $8 billion.

Reddit co-founder Alexis Ohanian raised $500 million for his VC firm 776 on Feb. 1. , saying he would "double down" on crypto investments.

Crypto infrastructure company Fireblocks raised $550 million, while Blockdaemon raised $155 million. Smaller investments take the total raised in the last month to over $2 billion.

Investments have poured in even as cryptocurrencies continued to trade in the red since the beginning of the year with slight upward movement experienced in the last couple of days. Bitcoin has crashed over 40% compared to its all-time high of around $69k on Nov. 9. Netizens coined the term 'crypto winter' for the slumping prices on the market chart.

As of 4.16 a.m. ET, the global crypto market cap was down 0.97% at $1.98 trillion, CoinMarketcap data showed.

James Malcolm, FX strategist at investment bank UBS, noted that the venture capital firms are largely focused on a few major infrastructure companies that could come to dominate the crypto space.

"VC is effectively competing for a limited pool of prime virtual real estate, in the form of promising digital asset infrastructure, whereas most coins or protocols already face rising competition and are having to deal with fresh macro headwinds, Malcolm told Market Insider.

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