Its been a busy week for crypto M&A — a signal the post-election sentiment shift could be a catalyst
Its been a busy week for crypto M&A — a signal the post-election sentiment shift could be a catalyst for even more such deals.
Architect Partners founder Eric Risley noted that crypto regulatory uncertainty in the US has put a damper on M&A activity, given the countrys “outsized influence” on that front.
But Donald Trumps election victory has spurred
crypto price
momentum, in part due to industry expectations around greater regulatory clarity and a less antagonistic approach to the segment.“It‘s frankly too early to have a clear vision as to exactly what those regulations will look like or timing,” Risley said. “However, it’s clear the tide is shifting.”
Since hitting a peak in March, trading volumes have been roughly flat over the past six months. The number of crypto M&A deals shrunk from 50 during the second quarter to 35 in Q3, Architect Partners data shows.
“Perhaps were now at a new level of sustainable volume which is a major factor in the growth and profitability of trading-related crypto businesses,” Risley explained.
Six of the 22 crypto M&A deals so far announced in Q4 were revealed this week.
That includes two asset management-centric transactions shared yesterday: Bitwises buy of Ethereum staking provider Attestant and an intended merge between Arca and BlockTower. Then this morning, Crypto.com said it bought Fintek Securities, a brokerage service and trading company with an Australian Financial Services Licence.
And let‘s not forget the other big deal last month (Stripe’s buy of Bridge), which Risley said “caught senior executive and board level attention across a broad array of crypto and traditional financial services companies.”
The tldr? Crypto M&A developments could accelerate in Q4 and 2025, perhaps serving as a barometer for the sectors trajectory.
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