Bain Capital Ventures, one of the world’s largest startup investment firms with $5.1 billion in assets under management, has announced the creation of a new $560 million fund that will focus on crypto-related investments.
According to a March 8 Bloomberg reportThe fund closed in November and has already invested $100 million in 12 undisclosed projects.
Bain Capital Ventures has a history of investing in the crypto and blockchain sector, having previously backed companies such as BlockFi, Compound and Digital Currency Group. The most recent fund BCV Fund I is the first of its kind from Bain Capital Ventures and focuses exclusively on the crypto market.
The latest development follows a slew of venture capital stakes in crypto in 2021. According to data from Pitchbook, venture capital investments in crypto projects last year totaled $25 billion, the highest amount ever recorded.
Related: Meet the Top 5 Busiest Crypto Funders of 2021, According to PwC
While crypto asset prices will be highly volatile in 2022, venture funds have continued to make significant investments in the sector. In February, US venture capital firm Sequoia Capital announced the creation of a $600 million cryptocurrency fund. Polygon has raised $450 million in a round of funding backed by some of blockchain’s best ventures.
The cryptocurrency market is in a slump. The price of Bitcoin (BTC) fell about 40% from its all-time high in early November as concerns mount over the Federal Reserve’s monetary policy to combat rising costs and geopolitical conflict.
Coin-Crypto has reached out to Bain Capital Venture for more information on the crypto fund and will update the article when more information becomes available.