Veteran Crypto Venture Capital Firm Blockchain Capital is Raising Approximately $700 Million to Continue Investing in Blockchain and Crypto Infrastructure
According to Bloomberg, veteran crypto venture capital firm Blockchain Capital is raising approximately $700 million for two new funds to continue investing in blockchain and crypto infrastructure. The firm has previously invested in leading projects such as Coinbase, Kraken, and OpenSea, and is one of the earliest VCs to systematically engage in the crypto industry.
This fundraising comes after the crypto market has experienced cyclical fluctuations, with funds refocusing on infrastructure and early-stage projects. English media and industry research generally point out that the current financing environment is more cautious compared to the previous bull market, but leading firms are still able to attract capital, indicating that funds are concentrating on projects with "stronger long-term viability."
A similar trend is also seen in the new fund strategies of firms like a16z crypto and Paradigm, which are reducing reliance on short-term token narratives and shifting towards protocol layers, development tools, and real application scenarios.
Source: Public Information
ABAB AI Insight
This fundraising reflects not a "market recovery," but a redistribution of capital within the cycle. The crypto industry has transitioned from the early "narrative-driven" phase to the "infrastructure filtering" phase. Funds are no longer broadly dispersed but are concentrating on a few projects with long-term survival capabilities, essentially a re-concentration after a supply-side clearing.
The scale of $700 million itself indicates that crypto has moved from a fringe asset class into the realm of institutional allocation. Early crypto funds relied more on high volatility for returns, whereas current funds resemble traditional venture capital—betting on long-term technological paths rather than short-term price fluctuations. This shift means the industry's revenue structure will gradually transition from "trading profits" to "equity + ecosystem control rights."
On a deeper level, this is a result of changes in the global liquidity environment. When macro funding costs rise and exit paths tighten, capital is more inclined to enter positions that can define industry standards, such as underlying protocols, development frameworks, and key infrastructure. Whoever controls these layers holds the "charging rights" of the future ecosystem.
From a historical perspective, this is highly similar to the early stages of the internet. After the bubble, capital retreated from the application layer and concentrated on infrastructure and platform companies, ultimately forming a long-term oligopoly structure. The current behavior of crypto VCs is repeating this trajectory, with the underlying assets shifting from information networks to value and ownership networks.