Several crypto venture firms, including Paradigm, Framework Ventures and Haun Ventures, have been expanding into AI. Multicoin Capital is staying with crypto instead, and its general partner Spencer Applebaum said the firm sees no reason to shift focus just to follow the AI investment boom.

HYPE, the token of Hyperliquid, is currently the largest position in Multicoin's hedge fund, and all of it was bought on the open market.

Multicoin manages about $2.7B. The size of the HYPE holding was not disclosed.

The move puts one of crypto's larger funds behind a single trading venue token at a time when peers are moving capital out of the sector, which also means the fund carries concentrated exposure to Hyperliquid's performance.