(Bloomberg) -- Venture capital firm Paradigm said it has raised $850 million for its third fund, which will focus on early-stage crypto projects.

Paradigm was previously an early investor and contributor for projects like crypto exchange Uniswap and Optimism, a way to scale the Ethereum blockchain. Paradigm — founded in 2018 by Coinbase Global Inc. co-founder Fred Ehrsam and ex-Sequoia Capital partner Matt Huang — is one of the largest VC investors in the industry. This is Paradigm’s first fund since Ehrsam stepped out of a leadership role with the San Francisco-based firm in October.

“This is the sort of early-stage work that we love contributing to, and it’s what we’ll be increasingly focused on going forward,” Huang wrote in blog post Thursday.

Paradigm previously raised a $2.5 billion fund in 2021, the largest-ever crypto investment vehicle at the time. 

New funds focused on cryptocurrency strategies have begun opening up shop at a faster pace earlier this year, and many existing funds have been fundraising while Bitcoin rallied to a record. Driving the rally was the introduction of exchange-traded funds investing directly into Bitcoin, and the more recent signs that approval of similar funds focused on Ether is imminent.

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