I noticed something interesting in the data of venture capital funds in crypto. Fortune obtained financial documents from the Securities and Exchange Commission revealing a broad contraction in assets under management among major players like Paradigm, Pantera, a16z crypto, and Multicoin during 2025. But the picture is more complex than just declining numbers.

First, it’s important to understand that shrinking assets under management isn’t always a bad sign. a16z crypto’s assets decreased by about 40% to $9.5 billion, but this reflects a smart strategic decision—distributing returns to investors at market peaks. The result? Their first fund’s DPI ratio reached 5.4 times, an exceptional return.

Pantera experienced a similar path. Five companies they invested in went public in 2025, including Circle and Bitgo, which returned significant capital to limited partners. Multicoin was the hardest hit—dropping from $9 billion to just $2.7 billion. The difference is that Multicoin manages both hedge funds and VC funds, making it more vulnerable to the sharp downturn in October 2025.

All this raises a real question: which cryptocurrencies will grow in the next phase? The answer lies in the strategies of these very funds.

Haun Ventures was the notable exception—the only fund to grow by over 30%, approaching $2.5 billion. How? They accurately predicted Mastercard’s acquisition of BVNK for $1.8 billion. Haun also raised a new fund worth $1 billion in the same year.

Interestingly, the major players didn’t stop raising capital. Paradigm raised $1.5 billion, a16z crypto raised $2 billion, Dragonfly closed its fourth fund at $650 million. This means one thing: they see upcoming opportunities.

The difference in strategies is very clear. a16z bets on blockchain entirely, while Paradigm hedges through AI and robotics. But both know that historically, bear markets precede strong bull runs.

The lesson here isn’t about the low numbers but about how to read the market. Smart funds are moving now, raising capital, and preparing for the next cycle. If you’re watching any of these funds, you’re actually tracking a roadmap of what could truly grow in the coming years.