**Crypto VCs Play It Safe with Bitcoin and Ethereum**

Venture capitalists (VCs) are taking a cautious approach in the crypto space, focusing on Bitcoin and Ethereum rather than early-stage Web3 startups. Adam Cochran of Cinneamhain Ventures explains that VCs prefer these established cryptocurrencies due to their strong returns, which outperform traditional index funds. Over the past decade, Bitcoin has averaged a 60% annual return, compared to the S&P 500's 13.20%.

While crypto venture funding hit over $1 billion in three months of 2024, it's still lower than the $4 billion monthly peaks of early 2022. VCs are waiting for safer, more profitable opportunities before diving into new trends.