It’s 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 country’s “outsized influence” This is a front.
Donald Trump’s victory in the election has boosted crypto prices, partly due to expectations from industry around greater regulatory certainty and a more antagonistic approach towards this segment.
“It’s frankly too early to have a clear vision as to exactly what those regulations will look like or timing,” Risley says “However, it’s clear the tide is shifting.”
The trading volume has remained relatively flat in the last six months, after reaching a high point in March. The number of crypto M&A deals shrunk from 50 during the second quarter to 35 in Q3, Architect Partners data shows.
“Perhaps we’re 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.
This includes two asset management transactions that were shared yesterday. Bitwise bought Ethereum staking service provider Attestant, and Arca and BlockTower are planning to merge. This morning Crypto.com announced that it had acquired Fintek Securities. Fintek Securities is a trading and brokerage company licensed by the Australian Financial Services Licence.
Risley also mentioned the Bridge purchase by Stripe, which was another big deal that happened last month. “caught senior executive and board level attention across a broad array of crypto and traditional financial services companies.”
The short version? Crypto M&A developments could accelerate in Q4 and 2025, perhaps serving as a barometer for the sector’s trajectory.
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