The chair of a $2.2 billion crypto fund says the industry can be as big as the internet for investors

Cryptocurrencies have struggled in recent weeks but investment in the space continues.

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The cryptocurrency world could become as big as the internet for investors, the co-chair of a $2.2 billion crypto fund has said, adding that there's huge scope for growth in areas such as infrastructure and scalability.

Katie Haun, the co-chair of venture capital firm Andreessen Horowitz's new crypto fund, told the New York Times' DealBook that the fund was oversubscribed and could have raised more money.

"I almost think about it as raising funds for the internet a couple of decades ago," she said. "Now we don't think anything of it – we have separate funds for consumer, for infrastructure, for enterprise, for things like that, for gaming.

"With crypto, we think that its potential for growth is as big as the potential for the internet."

Haun said the fund is in it for the long-term, making "seven to 10-year bets." She said a key investment area will be in companies that support the development of the crypto world.

"One great category we're interested in is infrastructure and scalability – UX [user experience], picks and shovels… to enable more mainstream consumers to be able to use crypto products and services. Look for us to double down on that area."

Haun also told DealBook that the fund will likely be investing in non-fungible tokens or NFTs. She said the tokens represent a "new business model for creators and bringing entirely new audiences to crypto, entirely new types like creators, sports fans and media types."

Bitcoin and cryptocurrencies boomed in the first few months of 2021 before falling sharply from May onwards.

Yet Haun said: "We started talking about raising this third fund long before what you just described, the euphoria. We're making seven- to 10-year bets."

Despite signs that institutional investors have cooled on cryptocurrencies in the short term, crypto companies are still raising large amounts of money.

Crypto investment startup Amber Group hit a $1 billion valuation last week after raising $100 million. Meanwhile, cryptocurrency exchange Bullish is in talks to merge with a special purpose acquisition company at a possible valuation of $12 billion, Bloomberg reported.

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