Citadel Securities fuels Kraken as crypto firms pull $253m this week

Core Insights - Venture capitalists have invested $23 billion into crypto companies in 2025, despite a $1.4 trillion market downturn in November [1] - The recent market decline has led to more selective investment strategies, with smaller cheque sizes and rigorous due diligence [1] - Leading firms like Kraken, Ripple, and Polymarket appear to be insulated from the downturn, attracting significant investments [1] Investment Trends - Capital is consolidating around strong market leaders, which is expected to widen their competitive advantage [2] - Macroeconomic factors, including a prolonged government shutdown, are influencing investor sentiment and decision-making [2] - A shift towards risk-off strategies is evident across all risk asset classes, including crypto [3] Major Fundraising Activities - Seven crypto firms raised over $253 million in a recent week, with significant contributions from Citadel Securities, Coinbase Ventures, and Tether [3] - Kraken secured $200 million in a strategic round from Citadel Securities, raising its valuation to $20 billion [4] - Kraken's recent fundraising follows a $600 million raise in September, bringing its total fresh capital to $800 million [4] Company Developments - Kraken plans to expand internationally and develop new payment products, reporting a year-over-year revenue increase to $648 million in Q3 [5] - Kraken has also acquired futures platform NinjaTrader for $1.5 billion [5] - Obex, a stablecoin incubator, raised $37 million in a funding round and is set to allocate an additional $2.5 billion to projects it incubates [6]