VCs pour $5.1B into crypto firms while Bitcoin’s ‘Uptober’ whiffed

In October, venture capitalists invested $5.1 billion into crypto firms, marking the second-strongest month since 2022, even as Bitcoin's price fell by nearly 4%, failing to deliver its historically strong 'Uptober' performance. This divergence is largely explained by the concentration of capital: three mega-deals—Intercontinental Exchange's (ICE) $2 billion investment in Polymarket, Tempo's $500 million round, and Kalshi’s $300 million raise—accounted for $2.8 billion, or 54% of the total funding across less than 2% of the deals. These major investments targeted infrastructure, compliance, and institutional use cases, suggesting VCs are betting on the long-term buildout of financial plumbing rather than short-term spot market sentiment, which was dampened by profit-taking and rising Treasury yields. However, this concentration creates fragility, as the overall positive narrative heavily relies on the success of these few large, strategically timed bets.

(Source：CryptoSlate)