September 14, 2023

Crypto, Blockchain Deals Top Fintech Investments in Europe, Report Says

Crypto in Europe

Crypto in Europe

Despite a downturn in the global fintech market, the crypto and blockchain industry emerged as a leader in investment in several major European markets.

A report titled “State of European FinTech” by Amsterdam-based fintech venture fund Finch Capital revealed that the Europe, Middle East, and Africa (EMEA) region experienced a 50% decrease in fintech investments in the first half of 2023, with total funding dropping from $27.3 billion in H1 2022 to $11.2 billion in H1 2023.

However, the crypto industry stood out in the overall financial landscape by securing a leading position in investments across several major markets.

The blockchain and crypto sector in the United Kingdom accounted for 28% of all fintech deals in H1 2023. The Netherlands saw an even higher percentage, with crypto and blockchain securing 35% of all deals. Germany and France also saw significant shares for crypto investments, with 27% and 29%, respectively.

The lending sector is currently the main competitor of crypto, as it has taken the lead in market share in Ireland and throughout the region regarding deal volume.

Despite the bearish trends in fintech, investor interest in the digital economy remains strong. A recent report shows that 24% of asset management firms have adopted a digital assets strategy, and an additional 13% plan to do so in the next two years. The report surveyed 60 investment professionals across the US, UK, and Europe, with almost half (48%) including digital assets in their firm’s portfolio.

Additionally, some crypto companies are still experiencing significant gains. For instance, CoinShares, a European digital asset management company, reported a total revenue of 20.3 million pounds ($25.9 million) in Q2 2023, which is a 33% increase compared to the same quarter the previous year.

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