Some of crypto's largest venture firms are broadening their investment focus beyond digital assets. Paradigm recently raised a $1.2 billion fund to invest in crypto alongside AI, robotics, and other frontier technologies, while Framework Ventures and Haun Ventures have also launched funds targeting sectors beyond traditional crypto.

The shift comes as the crypto venture market cools. According to Galaxy Research, crypto VCs deployed around $4 billion across 355 deals in Q1 2026, while the number of new crypto venture funds fell to its lowest level since Q3 2020. Meanwhile, AI accounted for nearly 70% of global startup funding in Q2, highlighting where investor demand is moving.

Industry participants say the market is evolving as crypto becomes more integrated into the broader financial system. With regulated markets, institutional adoption, and increasing competition from traditional investors, crypto is no longer viewed as a standalone investment category but as part of a wider technology landscape.