What happened? Theta Capital is launching a $200M blockchain fund-of-funds.
The Amsterdam-based firm is raising Theta Blockchain Ventures V with a $200 million target to back 10–15 crypto-native venture firms and is aiming for a 25% net IRR. Theta pivoted to digital assets in 2018, now manages about $1.2 billion, and has posted strong returns from prior funds. This would be the sixth fund in its Blockchain Ventures series and comes as overall crypto VC fundraising has slowed in 2025.
Who does this affect? Institutional allocators, crypto VCs, and blockchain startups.
Institutional investors looking for diversified early-stage crypto exposure get a way in without picking individual startups, since a fund-of-funds spreads risk across established crypto VCs. Those targeted venture firms could receive fresh capital to keep backing startups, and startups—especially infrastructure and rollup projects—stand to benefit from more large rounds. At the same time, generalist VCs and liquid crypto products like spot ETFs may face tougher competition for the same institutional dollars.
Why does this matter? It signals continued institutional interest and could reshape capital flows in crypto markets.
A successful $200M raise would show that specialized crypto investment strategies still attract institutional money despite macro pressures and a shift toward regulated, liquid instruments. That capital could concentrate into infrastructure and later-stage firms, fueling pockets of growth even as overall deal counts remain muted. It may also prompt other allocators to revisit niche VC and fund-of-funds allocations, subtly changing where capital flows in the crypto ecosystem.