Crypto-centric investment entity M31 Capital has released a new investment fund devoted to Web3 firms, highlighting the sector’ shift toward decentralized internet initiatives. 

Specifically, the M31 Capital Web3 Opportunity Fund will make investments of a maximum amount of $100 million in token initiatives and private equity opportunities within Web3.

Previously, the fund reportedly planned for making investments in projects designing decentralized internet infrastructure and applications. Presumably, the new investment instrument will be a “liquid venture fund,” a structure that gives investors liquidity after only a 12-month lock-up period.

M31 offered clarification that it has already managed to obtain $50 million in commitments from investors and will raise an extra $50 million prior to capping the fund at $100 million.

Regardless of current movements throughout the crypto market, 2022 has witnessed a proliferation of investment funds focusing on Web3 initiatives – a clear display of investors seeing value during the turbulence. 

Web3 has been the dominating force in terms of venture capital interest in 2022. In Q2 this year solely, Web3 initiatives took up approximately 42% of all individual venture deals throughout the blockchain sphere.

Crypto markets have shown a high degree of correlation with traditional equities for the majority of 2022, leading to numerous investors speculating that prices have diverged significantly from their fundamentals. 

Nonetheless, a high correlation suggests more short-term pain could be in store for the crypto sector as central banks around the world attempt to rein in inflation.

Nathan Montone, an early Bitcoin (BTC) investor who founded M31 Capital in 2016, said the current crypto market cycle is the first time in ten years that “price has trended down while fundamentals and revenue growth are hitting all-time highs nearly every day.”