Chicago-based venture firm CMT Digital has closed its fourth crypto investment fund at $136 million, signaling continued institutional confidence in blockchain infrastructure and decentralized finance despite a cooling venture landscape.
The new fund, CMT Digital Fund IV, will focus on early-stage startups building the backbone of onchain markets — from infrastructure protocols to decentralized financial systems.
Navigating the Downturn with Experience
The raise comes during one of the toughest crypto funding climates in years. According to Galaxy Digital, overall crypto VC investment fell 59% in Q2 2025 to just $1.97 billion across 378 deals — marking the second-weakest quarter since 2020.
Still, CMT’s success underscores enduring confidence from family offices and institutional LPs seeking exposure to digital assets with long-term potential.
Partner Sam Hallene said the firm is focused on backing “the next generation of visionaries” building sustainable systems for an onchain economy.
A Decade of Strategic Evolution
CMT Digital, part of the broader CMT Group, began investing in the crypto sector in 2016 and now holds more than 200 portfolio companies.
- Fund I (2016) — Focused on foundational access points, investing in early leaders like Coinbase and BitGo.
- Fund II — Shifted to core onchain infrastructure, including Consensys and dYdX.
- Fund III — Expanded utility with plays in payments and consumer-facing apps, including Ethena and Sky Mavis (creator of Axie Infinity).
- Fund IV (2025) — Targets projects “re-architecting finance”, blending traditional market logic with blockchain-native infrastructure.
Trading Roots, Venture Discipline
The firm’s investment philosophy is shaped by the 25-year quantitative trading history of its parent company, the CMT Group, using in-house market analytics and data-driven research to identify enduring technologies — not just hype cycles.
“As the world continues to move onchain, we believe the most transformative ideas are still ahead,” said Hallene. “With fresh capital, trusted partners, and a proven platform, we’re ready to help the next generation of builders.”
