Bitcoin News Today: BTCFi Attracts $175M in H1 2025 VC Funding as Focus Shifts to Consumer Apps

Bitcoin’s DeFi ecosystem, known as BTCFi, has attracted a total of $175 million in venture capital funding across 32 rounds in the first half of 2025, with a growing number of deals targeting consumer-oriented applications and demand-driven financial products [1]. This capital flow reflects a broader shift in investor strategy, moving away from purely speculative bets toward infrastructure and user-facing solutions that enhance Bitcoin’s utility as a yield-generating asset [2].

According to a report from Maestro, a Bitcoin DeFi infrastructure provider, 20 of the 32 funding rounds were directed toward DeFi platforms, custody services, or consumer-facing tools [1]. This trend indicates a maturing ecosystem where the foundational technology is stabilizing, allowing for more advanced and practical applications to emerge. The report also noted a decline in second-quarter activity, with just $44 million raised across 12 deals—representing a 66% drop from the $130 million raised in the first quarter [1].

Marvin Bertin, CEO of Maestro, emphasized that Bitcoin is transitioning from a static store of value into a dynamic financial network [1]. He highlighted that for the first time since 2009, the necessary components—such as exchanges, lending platforms, and stablecoins—are in place to support on-chain financial applications on Bitcoin’s blockchain [1]. This development aligns with broader industry observations that DeFi and traditional finance (TradFi) are beginning to converge, facilitated by improved infrastructure and cross-sector collaboration [1].

Nelli Zaltsman, head of blockchain payments innovation at JPMorgan’s Kinexys, noted that the artificial divide between DeFi and TradFi is expected to dissolve more quickly than anticipated, driven by innovation and regulatory clarity [1]. The BTCFi ecosystem has already seen a more than 22-fold increase in value during 2024, with total value locked (TVL) rising by over 2,000%, largely fueled by infrastructure advancements and Bitcoin’s price trajectory [1].

A notable example of investor confidence in BTCFi is a startup that has raised $21 million in funding, backed by prominent venture capital firms such as Castle Island and Anchorage [2]. These developments underscore the increasing institutional interest in building scalable, user-centric financial tools on the Bitcoin network.

The rise of BTCFi is further supported by the introduction of the Runes protocol in 2024, which enabled the first fungible token standard on the Bitcoin blockchain [1]. This innovation, alongside the launch of Bitcoin-native staking through platforms like Babylon, has opened new avenues for DeFi experimentation and user adoption [1].

As the market continues to evolve, the focus on consumer applications suggests that the BTCFi sector is moving toward broader mainstream acceptance. With robust institutional backing and a clear emphasis on usability and demand, the Bitcoin DeFi ecosystem is well positioned to drive the next phase of financial innovation on the world’s first cryptocurrency.

Source:

[1] BTCFi VC Funding hits $175M in H1 2025, Investors...

https://cointelegraph.com/news/btcfi-vc-funding-175m-h1-2025-on-consumer-apps

[2] BTCUSD - BTCFi VC funding hits $175M as investors focus on ...

https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96586735/btcfi-vc-funding-hits-175m-as-investors-focus-on

[3] BTCUSD - EU banking regulator finalizes capital rules for ...

https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96586738/eu-banking-regulator-finalizes-capital-rules-for-b