A16z crypto, the Web3 arm of the venture firm Andreessen Horowitz, has started seeking capital for its fifth fund.

People familiar with the effort told Fortune the firm is aiming to gather roughly $2 billion for the fund, which will focus solely on blockchain investments.

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One source added that the fundraising process is expected to be completed by the end of the first half of 2026.

The firm has been actively investing in other crypto-related companies throughout the last several months. 

In January, a16z invested in Babylon, a Bitcoin lending protocol. The firm also announced last month that it was raising $2.5 million for Kairos, a cross-platform tool for prediction market traders. In October, the firm invested $50 million in Jito, a crypto protocol that supports the blockchain, Solana (CRYPTO: SOL).

Yesterday, it was announced that A16z and Thrive Capital are reportedly leading a $4 billion funding round for Anduril Industries, valuing the defense technology company at $60 billion.

A16z was founded by investor and entrepreneur Chris Dixon in 2018. The firm launched its first $300 million fund a year after a surge in blockchain pushed the price of Bitcoin close to $20,000.  In 2022, the fund grew to $4.5 billion, which the firm continues to invest. 

Although the new fund will be less than half that amount, sources told Fortune that the crypto firm is planning to shorten its fundraising cycle to respond more quickly to the fast-changing nature of the crypto market.

Bitcoin (CRYPTO: BTC) fell towards $70,000 as institutional outflows stopped the relief rally dead in its tracks.

Bitcoin ETFs saw $227.8 million in net outflows on Thursday, while Ethereum (CRYPTO: ETH) ETFs reported $90.9 million in net outflows.  

Meanwhile, the broader meme coin sector dropped about 3% to roughly $32 billion.

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