Crypto venture firm Dragonfly Capital completed a $650 million fourth fund, marking one of the largest raises in the sector at a time when many blockchain-focused VCs are struggling, Managing Partner Haseeb Qureshi said.

“It’s a weird time to celebrate,” Qureshi wrote on a social media post on Tuesday, describing low spirits and “the gloom of a bear market” for crypto. However, he noted that Dragonfly has historically raised capital during downturns, including the 2018 ICO crash and just before the 2022 Terra collapse, 'vintages,' he said, ultimately became the firm’s best performers.

In September, the firm said it was aiming to raise $500 million for its fourth fund, which would target early-stage projects. It has not yet identified any of them. In May 2023, Dragonfly Capital raised $650 million for its third crypto fund for later-stage companies.

'Biggest bet yet'

The new vehicle comes as token prices slumped this year and fundraising across crypto ventures has slowed sharply. Bitcoin has lost roughly 46% of its value since its all-time high of more than $126,000 in October of last year, and the crypto downtrend has wiped out more than $1.4 trillion in market cap.

While market sentiment remains bearish, Qureshi is bullish on crypto's financial use cases, saying the sector "is exploding," while other non-financial use cases are failing. In fact, Dragonfly has increasingly leaned into crypto-financial infrastructure, from stablecoins to tokenization and on-chain payments, reflecting a broader shift away from speculative Web3 applications and toward blockchain-based financial services.

"Stablecoins are eating the world. DeFi has grown so big it's rivaling CeFi. Financial institutions around the world are racing to build out their crypto strategies. And prediction markets are becoming the most trusted source of truth on the internet," he wrote.

Qureshi also noted the growth in Dragonfly's recent investments, including Polymarket, Ethena, Rain, and Mesh, as examples of his thesis that crypto's financial use cases are having a moment.

His comments come after VC firms at Consensus Hong Kong 2026 struck a cautious tone about the state of the crypto market amid prevailing bearish sentiment. The crypto VCs that included Qureshi, Maximum Frequency Ventures’ Mo Shaikh and Pantera Capital's Paul Veradittakit all echoed the same sentiment: invest in what's working, like stablecoins and tokenizations, while selectively betting on sectors such as AI and prediction markets.

Qureshi seems to be doubling down on the idea that the crypto industry isn't dead, despite the gloom, but just realigning and noted that the new fund is his firm's "biggest bet yet that the crypto revolution is still early in its exponential."

Fortune was first to report Dragonfly's recent raise.