After peaking at close to $230 million in venture capital investments in the first quarter of this year, bets on bitcoin startups slowed further in Q3 — they’d already started slowing in Q2, but now they’re down 41 percent on that period.
In a bright spot, though, the European Court of Justice just ruled that bitcoin currency exchange is not liable to value added tax (VAT), representing a small win for a space facing many challenges.
While investments into bitcoin startups are still up slightly year-on-year, the $85 million they drew in Q3 is the lowest amount of any quarter since Q3 last year, which saw just $75 million.
Investments fell to $145 million in Q2, already a big slump from the Q1 peak. But that downwards trend seems set to continue as of the latest numbers.
Bitcoin startups will have raked in more than $1 billion in venture capital funding as of the end of this month, according to data cited by