Partner of Cinneamhain Ventures: Crypto financing has slowed down, and most LPs only want to surpass the returns of index funds

According to Cointelegraph, Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, stated that venture capital firms have significantly slowed down their investment in cryptocurrencies due to subtle reasons. Firstly, most of these LPs only want to surpass the returns of index funds. Secondly, in the medium term, holding Bitcoin and Ethereum can easily outperform index funds in terms of investment return ratio. According to RootData, cryptocurrency venture capital funds exceeded $1 billion in three different months of 2024 (March ($1.09 billion), April ($1.04 billion), and July ($1.01 billion). Compared to the previous year, this is a significant increase, which was only reached once in November 2023 ($1.29 billion). However, this is still significantly lower than two years ago, when the monthly cryptocurrency venture capital funding for the first four months of 2022 exceeded $4 billion.