Andreessen Horowitz (a16Z), a Wallet Street Venture Capital firm, is raising funds for a $4.5 billion dual fund aimed at strategic investments in the bitcoin ecosystem.

According to the Financial Times, the company plans to invest $3.5 billion in its new cryptocurrency business fund, with $1 billion set aside for strategic investments in crypto firms seeking seed finance.

Based in Silicon Valley, Andreessen Horowitz expects to secure the funding by March, roughly doubling the firm’s previous crypto fund of $2.2 billion.

While Wall Street may be catching on to the cryptocurrency industry’s potential, Andreessen Horowitz has always supported emerging-market technologies and promising entrepreneurs. Before, the firm hired Anthony Albanese, the chairman of the New York Stock Exchange’s regulatory branch, as its new chief regulatory officer in 2020 while also managing its burgeoning cryptocurrency division. Kim Milosevich, the former Vice President of Communication at Coinbase, has also joined a16Z as Chief Marketing Officer.

If the firm is successful in raising funds, it will be the largest funds raised in the digital currency world, surpassing Paradigm Capital, a joint venture between Coinbase’s Fred Erhsam and Sequoia Capital’s Huang, which raised $2.5 billion in November last year to support startups in the fast-growing cryptocurrency ecosystem.

While the a16Z’s plans have not been made public, the business is well-known for a related fundraiser in the ecosystem. In June of last year, the company raised $2.2 billion from investors to launch the Crypto Fund III, the largest at the time.

Andreessen Horowitz is well-known for being one of the first investors in major corporations such as Meta Platforms Inc (previously Facebook Inc), Twitter, and Coinbase Global Inc. He has also made headlines for funding projects such as OpenSea, CryptoKitties, and Helium. With metaverse and NFT-related ideas gaining traction right now, the projected $4.5 billion will almost certainly be put to good use.


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