<ul><li>Global venture capital firms invested approximately $11.5 billion into crypto and blockchain-focused startups in 2024, while crypto hedge fund assets under management (AUM) remained around $15.2 billion.</li><li>Institutional allocators are primarily directing their capital into long-duration, illiquid VC strategies in the crypto space, despite the market correction in 2022.</li><li>Unlike traditional finance where liquidity is rewarded, in the crypto space, early-stage crypto investments are favored due to being easier to understand and fitting into institutional 'Technology VC' buckets.</li><li>Liquid crypto hedge funds have strategies that require deeper understanding and active oversight, which many allocators may not feel prepared for, leading to a preference for early-stage investments.</li></ul>

Why Does So Much Capital Flow Into Crypto VC — and Not Into Liquid Strategies?

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