Cinneamhain Ventures Partner: Cryptocurrency financing has slowed down, most LPs only want returns surpassing those of index funds

According to Cointelegraph, Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, said that the pace of venture capital firms' investments in cryptocurrencies has significantly slowed down. The reasons are somewhat subtle: first, most LPs just want to exceed the returns of index funds; secondly, from a medium-term perspective, holding Bitcoin and Ethereum can easily beat index funds in terms of investment returns.

According to data from RootData, cryptocurrency venture capital funds exceeded $1 billion in three different months in 2024 (March ($1.09 billion), April ($1.04 billion), and July ($1.01 billion)). Compared with the previous year, this is a significant increase as there was only one instance when it reached this level - November 2023 ($1.29 billion). However, this is still significantly lower than two years ago when crypto venture capital funding exceeded $4 billion each month for the first four months of 2022.