Top Crypto VCs See Portfolios Shrink Amid Market Downturn

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The biggest names in crypto venture capital, including Paradigm and Andreessen Horowitz's a16z crypto, saw their assets under management shrink amid the 2025 crypto market downturn, according to previously unreported filings obtained from the SEC. The declines were partly due to the firms distributing capital back to investors as they timed exits to coincide with the market's highs.

Why it matters

The crypto venture capital industry has weathered numerous boom and bust cycles, and the latest downturn has exposed how even top firms are not immune to the volatility of digital assets. The shifts in AUM provide a rare glimpse into the inner workings of these opaque funds.

The details

a16z crypto's total assets under management plummeted almost 40% between 2024 and 2025 to $9.5 billion, even as its parent Andreessen Horowitz saw holdings balloon past $100 billion. Sources say a16z timed distributions from its first three crypto funds to coincide with 2025's market highs, with one fund posting a stellar 5.4 net DPI. Pantera Capital also distributed capital back to investors in 2025 after five portfolio companies went public. Other firms like Multicoin saw AUM plunge as the broader crypto market crashed.

• In 2025, a16z crypto distributed capital from its first three funds.
• In 2025, Pantera Capital distributed capital back to investors after five portfolio companies went public.

What they’re saying

What’s next

Other crypto VCs like Paradigm, a16z crypto, and Dragonfly are currently seeking to raise new funds, which could help boost their assets under management if the crypto markets rebound.