a16z Crypto Targets $2 Billion Fund Amid Cryptocurrency Market Downturn

a16z crypto, the blockchain arm of venture giant Andreessen Horowitz, is gearing up to raise its fifth fund, targeting around $2 billion in investments. According to multiple sources, the firm plans to close the fundraising cycle by the end of the first half of 2026.

The move comes as the crypto market faces a downturn, with Bitcoin prices plummeting nearly 50% since October's record high. However, the industry is enjoying its most favorable regulatory environment in Washington, D.C., in its 17-year history.

a16z crypto has been at the forefront of institutional investment in digital assets, with a number of successful investments under its belt. The firm has backed winners such as Anchorage, Kalshi, and Uniswap, among others. However, not all projects have panned out, including Farcaster, which was building a decentralized version of Twitter.

The latest fund will be significantly smaller than the previous one, which raised $4.5 billion in 2022. The firm is taking advantage of the rapidly shifting trends in crypto by aiming for a shorter fundraising cycle.