Crypto enterprise agency Node Capital has launched a liquid fund to put money into listed tokens, betting that bearish market situations supply one of the best entry level.
“We see an important alternative available in the market for liquid tokens whenever you take a look at present valuations as in comparison with early-stage pre-launched tasks,” Amos Meiri, founding associate at Node Capital, instructed The Block. “Bear market is one of the best time to put money into liquid tokens which are what we name right now ‘pre-ETF [pre-exchange traded fund assets].'”
That is Node Capital’s first liquid fund and it’s structured as an open-ended automobile — that means it accepts new capital on a quarterly foundation. “We’re actively fundraising,” Meiri mentioned. “It is a non-public fund and we will onboard solely particular sorts of buyers primarily based on rules,” he added, declining to reveal additional particulars.
The launch comes amid heightened volatility in crypto markets, fueled by shifting investor sentiment and macroeconomic headwinds similar to U.S. tariffs. Bitcoin has dropped over 15% year-to-date to round $79,000, whereas the full crypto market cap has fallen over 25% to $2.6 trillion. The downturn, Meiri argues, is the appropriate time to double down on liquid tokens.
Liquid crypto funds usually put money into already listed tokens and usually deploy extra lively methods geared toward near-to-mid-term returns. This contrasts with conventional enterprise funds that again early-stage startups with longer funding horizons. Hybrid funds, however, mix each methods.
Based in 2021, Node Capital started with a hybrid fund, later elevating a second enterprise fund, and now provides its new liquid technique. The agency at present manages $50 million in belongings. Its second enterprise fund raised $20 million, Meiri mentioned, whereas declining to reveal complete fundraising throughout all its autos.
Node Capital’s portfolio consists of notable tasks like Ether.fi, Fhenix and Axelar. Meiri didn’t title the agency’s restricted companions however mentioned they embody crypto founders from main Layer 1 blockchain tasks and normal companions from each crypto-native and conventional enterprise companies.
To navigate unstable markets, Node Capital has developed proprietary threat administration instruments, Meiri mentioned. “Essential to say that we’re not merchants however buyers and searching into longer holding durations of two to 5 years,” he famous.
“We take a look at tasks which have clear discrepancies when evaluating their runway, progress, onchain knowledge and valuations,” Meiri mentioned. “Most of it at present is round infrastructure and dapps [decentralized applications].”
Node Monster’s AUM crosses $1 billion
Past Node Capital, the group additionally operates three further models: Node Monster, Node Safety and Node Hyperlink.
Node Monster, launched in 2023, is the group’s validator arm. It not too long ago surpassed $1 billion in belongings beneath administration throughout greater than 20 blockchain networks, making it one of many largest Ethereum validators, in accordance with Node Capital.
Node Safety, launched this 12 months, offers providers similar to safety audits, vulnerability assessments and incident response. Node Hyperlink, additionally launched this 12 months, helps Node Capital’s portfolio firms and companions via group progress and comparable initiatives to drive engagement.
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