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Launched the largest crypto fund to date worth $4.5 billion

Money continues to flow into crypto, and venture capital giant Andreessen Horowitz is once again leading the way.

The investment giant confirmed on Wednesday that it will launch another crypto-focused investment fund worth $4.5 billion. In January, rumors emerged that the firm was seeking $4.5 billion for a new crypto fund, although the news was not confirmed at that time. The record fund represents the largest monetary allocation dedicated to crypto and blockchain projects and marks the firm’s fourth foray into crypto investments.

– Bear markets are often when the best opportunities arise, when people can actually focus on building technology rather than being distracted by short-term price activity – said Andreessen Horowitz general partner Arianna Simpson in a phone interview with CNBC.

The Silicon Valley firm has cemented its position at the forefront of the crypto market in recent years after investing significant amounts in many of the leading projects in the space, including Solana, Uniswap, and Axie Infinity. 

This is not the first time Andreessen Horowitz has launched a crypto fund during a market downturn. The firm’s previous Crypto Fund III, valued at $2.2 billion, was launched in June 2021, just weeks after the crypto market experienced its worst drop in over a year.

The new fund increases the total amount that Andreessen Horowitz has raised for crypto and blockchain investments to $7.6 billion. The firm stated that it plans to use the fund for direct investments in cryptocurrencies and equity in blockchain companies.

Despite the crypto sector recently reaching its lowest market capitalization in over a year, investment in crypto projects shows little signs of slowing down. In April, Near blockchain raised $350 million, while USDC issuer Circle secured $400 million. Reports indicate that the popular metaverse game Sandbox is also looking to secure an additional $400 million at a valuation of $4 billion.

It seems that Andreessen Horowitz also wants to take advantage of the currently depressed market to continue its crypto investment.