BTCFi VC funding hits $175M as investors focus on consumer apps

Bitcoin DeFi is seeing more venture capital interest as institutional investors flock to Bitcoin and its increasing yield-bearing capabilities.

Bitcoin’s decentralized finance (DeFi) ecosystem is experiencing renewed venture capital (VC) interest, signaling more demand for the world’s first cryptocurrency as it gains utility as a yield-bearing asset.

Bitcoin DeFi, or BTCFi, is a technological paradigm that seeks to bring decentralized finance capabilities to Bitcoin’s base layer.

According to a new report from Bitcoin DeFi infrastructure provider Maestro, shared with Cointelegraph, the BTCFi ecosystem received $175 million worth of VC funding across 32 rounds in the first half of 2025, with increasingly more capital flowing into consumer apps and demand-driven products.

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