Raising a crypto VC fund in 2025 is increasingly difficult, even during a bull market. Funding has collapsed from $86 billion in 2022 to just $3.7 billion this year, with only top-tier firms attracting LP capital. Investors now demand realized returns, prefer safer, liquid assets, and face high interest rates. Regulatory uncertainty, stiff competition from traditional finance, and capital shifting toward AI startups further limit opportunities. Fundraising cycles have stretched to nearly two years, forcing many smaller firms toward closure. Still, niches like blockchain infrastructure and AI convergence offer resilient pathways for differentiated funds to survive and grow.