Share this article
SPiCE VC Launches $250M Blockchain Fund Targeting Institutional Investors
The firm previously raised $50 million for a tokenized fund focused on financial verticals, but its second fund will invest more broadly.
By Brandy Betz
Updated May 11, 2023, 5:37 p.m. Published May 10, 2022, 1:15 p.m.
Make us preferred on Google
SPiCE VC has announced a new $250 million blockchain-focused fund, five times larger than the firm’s first fund and structured to appeal to institutional investors. The firm will also kick off a roadshow in Dubai to court potential backers, according to a press release provided to CoinDesk.
The initial SPiCE I fund was a $50 million tokenized vehicle (meaning the fund’s assets were turned into tokens to provide liquidity to investors) that started raising money in 2017 when blockchain technology was generally used in financial verticals. The fund’s portfolio included three companies that went public last year: digital security platform INX Limited (INXD), online lottery platform Lottery.com (LTRY) and crypto exchange Bakkt (BKKT).
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
SPiCE II is launching after blockchain use has spread to a wider range of industries, including gaming, retail, healthcare and supply chain management.
“The focus of [SPiCE II] is the same. We invest in companies that are building significant pieces of the blockchain ecosystem, and companies that are building infrastructure. Companies that are building on distributed ledger technology to significantly change industries,” Tal Elyashiv, co-founder and managing partner of SPiCE VC, told CoinDesk in an interview. “ [But] the breadth is much bigger. So we expect more diversity in SPiCE II versus SPiCE I.”
SPiCE II’s structure and focus
SPiCE II has a more traditional venture capital structure with a tokenized portion, the size of which will be determined by investor interest, explained Elyashiv. The larger size of the fund means SPiCE VC can take the lead role in more rounds and invest in more companies than with the SPiCE I.
Whereas SPiCE I raised funding from family offices, small funds of funds and high net worth individuals, SPiCE II is targeting the participation of institutional investors. SPiCE VC has already seen investor interest in Dubai, where SPiCE has an office, making it the natural kickoff location for the roadshow.
“The environment in Dubai is very vibrant. We’ve seen a lot of deals move relatively quickly there, so it’s a good place to start,” said Elyashiv. “Dubai is also driving growth in terms of local adoption of blockchain. So there’s much more awareness of blockchain [there] in a broader scope than just crypto.”
The second SPiCE fund is launching as crypto venture capital investments continue at a steady pace after last year’s record-breaking fund launches from Andreessen Horowtiz and Paradigm, despite the recent decline in digital asset prices. Crypto native VC firm Dragonfly Capital recently announced a $650 million third crypto fund, more than double the size of the prior fund.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Coinbase CEO says Big banks now view crypto as an ‘existential’ threat to their business
Brian Armstrong returns from World Economic Forum with message: traditional finance is taking crypto seriously
What to know:
- Coinbase CEO Brian Armstrong said a top executive at one of the world’s 10 largest banks told him crypto is now the bank’s “number one priority” and an “existential” issue.
- At Davos, Armstrong highlighted tokenization of assets and stablecoins as major themes, arguing they could broaden access to investments for billions while threatening to bypass traditional banks.
- He described the Trump administration as the most crypto-forward government globally, backing efforts like the CLARITY Act, and predicted that AI agents will increasingly use stablecoins for payments outside conventional banking rails.
Top Stories
