OP Crypto’s ‘$100M’ Fund of Funds To Back Early Stage VCs

Lucas He and David Gan, both Huobi alumni, will lead the new fund as general partner and president, respectively


Blockworks exclusive art by axel rangel


key takeaways

  • Despite current market woes, OP Crypto is launching a fund of funds designed to back budding fund managers of early-stage crypto startups
  • OP Crypto’s latest fund follows on the success of its venture capital fund which is backed by the likes of Galaxy Digital and Digital Currency Group

Venture capital firm OP Crypto, founded by former Huobi executive David Gan, said Thursday it has launched a new vehicle aimed at emerging fund managers focused on early-stage digital asset investments.

Dubbed OP Fund of Funds I (OP FoF I), the investment vehicle will target managers with vertical expertise in blockchain infrastructure, decentralized finance, non-fungible tokens (NFTs), the metaverse and games, among other areas. Emerging managers are those with limited experience charged with managing assets below a particular monetary threshold.

Despite declining venture capital interest and a contracting market, OP Crypto said its latest fund has scooped up $50 million in commitments from the likes of FTX subsidiary LedgerPrime and investment firm FJ Labs. The new fund is attempting to target a hard cap of $100 million, according to a statement.

Though not typical in crypto, fund of funds are a type of investment strategy operating as pooled capital that invests in other funds with the aim of reducing risk by broadening the diversity of investment vehicles under its belt.

Founded last year, the British Virgin Island-domiciled venture capital firm seeks to invest in fintech and blockchain technology sectors both indirectly, through its latest fund, and directly with another, dubbed Venture Fund I.

The latter fund, which picked up a sizeable investment of $50 million from participants in March, is backed by some of the industry’s largest players including Galaxy Digital and Digital Currency Group, as well as institutional investors Bill Ackman and Alan Howard.

Lucas He, OP Crypto’s chief operating officer and another Huobi alumni, will serve as OP FoF I’s general partner. A veteran in the crypto space since 2013, He previously held fund of funds roles at Huobi Capital and State Street, according to his LinkedIn.

Meanwhile, OP Crypto founder David Gan will take on the role of president and adviser to the fund without commitment conflicts, as it is expected Gan will continue to devote his attention to Ventures Fund I, according to the statement.

Investors in OP FoF I will receive access to deal flow from the managers and have the opportunity to double down on specific projects via co-investment opportunities, OP Crypto said.

“We plan to be a franchise of different crypto native funds,” He told Blockworks in an email discussing OP Crypto’s investment strategy. “Starting off with direct venture fund I and then following with FOF I, we plan to launch many successive fund vehicles down the road serving different purposes and risk appetites to our investor base.”

When asked about OP Crypto’s risk management approach amid the backdrop of overleveraged hedge funds, investors and liquidity providers, He told Blockworks his firm took a “disciplined approach.” To achieve this, He said OP Crypto deploys slowly — having invested only around 20% of its total operating capital last year — while also seeking to double down at reasonable valuations during the market downturn.

For OP FoF I specifically, he added, the fund will attempt to back managers that also share this “disciplined” and “concentrated approach” to deployment. 

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png


Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.



Do Kwon may miss the start of the March 25 trial in the SEC’s case against the former executive and Terraform Labs


Riot Platforms bought 31,500 more mining machines while CleanSpark has begun operating in Mississippi


Dencun was activated on all testnets, a blog post Tuesday said


Hut 8 also announced it broke ground on a Texas mining site


Uniswap aims to become a “complete platform for swapping” following its latest product releases


Continued demand for bitcoin ETFs coupled with greater demand for bitcoin from exchanges is contributing to price moves, analysts say