CMT Digital raises $136 million for its fourth crypto fund, betting on stablecoins, DeFi, and the Ethereum ecosystem.

Located in Chicago, crypto investment firm CMT Digital recently successfully raised $136 million to support its fourth crypto venture fund. Despite the current crypto market remaining subdued and a market rebound not yet evident, CMT Digital’s fundraising success has garnered broad attention from family offices, high-net-worth individuals, and other institutional investors. While the target was $150 million, the final amount fell short due to sluggish investment cycles in crypto and macroeconomic uncertainties. The funds will be used to further support innovative companies within the crypto industry, especially key players in stablecoins and the Ethereum ecosystem.

Overview of CMT Digital’s Fourth Crypto Fund

Fundraising Background and Goals

As a subsidiary of CMT Group, CMT Digital began raising capital in mid-2024 with the goal of securing $150 million for its fourth crypto venture fund. Following the market crash in 2022, venture capital inflows into crypto have remained low. Against this backdrop, CMT Digital managed to raise $136 million, demonstrating strong appeal despite not fully reaching its target.

Participants in the Funding Round

This fundraising attracted a diverse group of investors, including family offices, high-net-worth individuals, and other institutional investors. Sam Hallene, a partner at CMT Digital, told Fortune magazine that the company completed this round in early October, even though the initial target was not fully met. Notably, some investors were politely declined at the final stages, yet the company still managed to secure nearly the desired amount.

Current Crypto Investment Environment: Market Weakness Impacting Fundraising

Post-2022 Market Crash and Investment Trends

The crypto market experienced a significant crash in 2022 and has yet to fully recover. According to data from The Block Pro, total venture capital investments in Q1 2025 amounted to $5.23 billion, with total investments to date at $12.45 billion. In contrast, Q1 2022 saw VC investments of $13.3 billion—the highest on record for crypto venture funding.

While the market has not yet returned to the bullish levels seen during the pandemic, some investors are beginning to reassess the potential in crypto, particularly in stablecoins and Ethereum-related projects. CMT Digital’s successful fundraising reflects this emerging optimism. Despite ongoing uncertainties, capital flows within the market are gradually warming.

Reasons for Funding Slowdown

The slowdown in funding partly stems from a sluggish crypto investment cycle and macroeconomic factors. Global economic uncertainties and evolving regulatory policies have influenced investor decisions. For CMT Digital, although this fundraising round did not fully meet expectations, it still demonstrates the company’s strong market appeal.

CMT Digital’s Investment Strategy and Future Plans

Past Successes and Risk Management

CMT Digital has accumulated substantial experience in crypto investing. The firm has supported several notable projects, including stablecoin issuer Circle (whose token CRCL went public this year) and Ethereum ecosystem studio ConsenSys, which is also preparing for an IPO.

Leveraging its parent company CMT Group’s quantitative trading expertise, CMT Digital employs data analysis and market trend insights to inform its investment decisions. Since its founding in 2017, it has invested in over 200 crypto-related companies worldwide. Its strategic investments extend beyond exchanges and cryptocurrencies to include stablecoins, DeFi, and blockchain infrastructure.

Deployment of Funds and Investment Focus

According to Sam Hallene, about a quarter of the new funds has already been deployed. Going forward, the firm plans to focus on key areas such as stablecoins, DeFi, and the Ethereum ecosystem. As blockchain technology continues to evolve and institutional participation increases, CMT Digital aims to identify innovative companies with long-term growth potential.

Currently, the majority of its investments are directed toward projects advancing blockchain technology, especially in stablecoins. These initiatives not only attract mainstream investors but also help lay the foundation for crypto market stability and sustainable growth.

Market Outlook and CMT Digital’s Future Role

Long-Term Potential of Crypto Industry

Although the crypto market remains in a correction phase, its long-term prospects remain optimistic. With increasing global interest in cryptocurrencies and blockchain technology, firms like CMT Digital, employing forward-looking investment strategies, are positioning themselves ahead of the market recovery. For long-term investors, opportunities abound in DeFi, stablecoins, and blockchain infrastructure.

CMT Digital’s Future Role

As a leading crypto venture capital firm, CMT Digital has established a significant presence in the industry. As markets recover, it will continue seeking investment opportunities worldwide, especially in innovative projects within Ethereum and other blockchain ecosystems. The company emphasizes not only financial returns but also the advancement of technological innovation and regulatory compliance in the crypto space.

Conclusion

CMT Digital’s successful raise of $136 million demonstrates that crypto investments remain attractive even during downturns. While the market has yet to fully rebound, companies like CMT Digital, through precise market insights and long-term strategies, are laying a solid foundation for future growth. As institutional investors gradually enter the space and markets recover, CMT Digital and similar firms are poised to play vital roles in driving innovation and expanding opportunities within the crypto industry.