Multicoin Capital’s $2.7 billion operation stays focused on crypto with HYPE as top hedge fund holding
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Multicoin Capital's focus on crypto over AI highlights a strategic bet on specialization, potentially influencing venture capital trends.
The $2.7 billion firm named Hyperliquid's HYPE as its largest hedge fund position as peers such as Paradigm broaden into AI
Mon 19 Oct 2026 · 11:50 EDT · 2 min read
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Multicoin Capital has identified Hyperliquid’s HYPE token as the largest position in its liquid hedge fund, while reaffirming its commitment to crypto investments rather than expanding into artificial intelligence.
The Austin based investment firm, which manages approximately $2.7 billion in assets, will continue focusing on digital assets despite rival venture capital firms broadening their investment mandates, General Partner Spencer Applebaum said in an October 19 Bloomberg interview.
“We believe we have an edge in crypto, and we want to stay true to it,” Applebaum said.
He disclosed that Multicoin acquired its HYPE holdings through open market purchases rather than private token allocations, adding that the firm typically holds publicly traded investments for several years.
The firm did not disclose the size or value of its HYPE position.
Multicoin maintains crypto focus as rivals expand into AI
Multicoin’s strategy contrasts with competitors including Paradigm, Framework Ventures, and Haun Ventures, which have expanded their investment scope beyond cryptocurrencies to pursue opportunities in artificial intelligence and other emerging technologies.
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Applebaum questioned whether combining crypto and AI offers compelling investment opportunities, arguing that some investors are attempting to create connections between the sectors without identifying meaningful problems to solve.
The firm remains open to projects combining blockchain infrastructure with AI applications, including Grass, a decentralized network that supplies data infrastructure to AI companies and has received investments from Multicoin’s hedge and venture funds.
Applebaum also addressed the slower deployment of Multicoin’s $422 million venture fund raised in 2022, attributing the pace to declining startup valuations following the collapse of FTX.
He said seed funding rounds of approximately $3 million at $30 million valuations became common in 2023, making it more difficult to deploy a large venture fund quickly.
The comments highlight Multicoin’s continued commitment to crypto investments as other major venture firms diversify their portfolios to capture opportunities in the growing AI sector.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.