Quick Breakdown
- •CMT Digital closed Fund IV at $136 million, targeting early-stage DeFi and blockchain infrastructure startups.
- •The firm leverages its quantitative trading roots to evaluate technology beyond market cycles.
- •The fundraising achievement is notable amidst a significant contraction in crypto venture funding since 2022.
Chicago-based venture firm CMT Digital has announced the closure of its fourth investment fund, successfully raising $136 million. This capital will be allocated to backing early-stage blockchain infrastructure and decentralized finance (DeFi) projects. The announcement, made on November 5, indicates that investor participation in the digital assets sector continues, albeit with increased selectivity.
🚨BULLISH!!!
CMT Digital raised $136M for a new crypto fund
WE STILL GOT IT 🔥 pic.twitter.com/wep1TVjlzg— Kyle Chassé / DD 🐸 (@kyle_chasse) November 5, 2025
Backing Builders Through Market Cycles
As an affiliate of the established proprietary trading firm CMT Group, CMT Digital has been actively involved in crypto venture funding since 2016. The firm has amassed over 200 investments across various market conditions, including both highs and lows. Partner Sam Hallene stated that the latest fund attracted interest from institutional limited partners and family offices. This demonstrates that capital remains available for teams focused on developing genuine utility and durable infrastructure within the blockchain space.
“As the world continues to move on-chain, the most transformative ideas are still ahead. With new capital and strong partners, we’re committed to helping the next wave of founders build,”
Hallene added.
A Strategy Rooted in Quant Trading Insight
CMT Digital's investment philosophy is significantly influenced by CMT Group's 25-year history in quantitative trading. This background equips the firm with in-house research and market modeling capabilities. The team believes these capabilities enable them to identify technology with long-term potential, distinguishing it from trends driven solely by hype or short-term momentum.
The firm's previous funds have supported key developments in the crypto ecosystem. Fund I backed foundational access points like Coinbase and BitGo. Fund II concentrated on core blockchain infrastructure and developer tools, supporting companies such as Consensys and dYdX. Fund III expanded into payments and consumer applications, with notable investments in Ethena and Sky Mavis. Fund IV is set to focus on what CMT describes as "re-architecting finance," by supporting blockchain-native systems designed for global financial markets.
Arriving in a Cooling Venture Market
This capital raise occurs during a period of subdued activity for crypto venture capital. Data from Galaxy Digital indicates that crypto startups secured only $1.97 billion across 378 deals in the second quarter of 2025. This figure represents a 59% decrease from the previous quarter and marks one of the weakest periods since 2020. For perspective, the sector saw over $13 billion in investment in the first quarter of 2022 alone.
August 2025 also saw notable shifts in crypto venture capital activity, according to RootData. The month recorded 81 publicly disclosed funding rounds, which was a 6.6% increase from July. However, this also represented a 29.6% decrease compared to the same month in the previous year.