Key Takeaways
- • Dragonfly, a crypto-focused venture capital firm, has acquired MetaStable Capital, one of the oldest cryptocurrency hedge funds founded in 2014 by Naval Ravikant, for an undisclosed amount.
- • MetaStable was an early investor in major blockchain projects including Ethereum, Avalanche, Cosmos, Starkware, NEAR, Zcash, Filecoin, Dfinity, and Algorand, with over $400 million in assets under management as of July 31, 2022.
- • Dragonfly managing partner Haseeb Qureshi, who previously worked as a partner at MetaStable, led the integration, which includes a rebrand dropping "Capital" from the fund's name and introducing new branding.
- • The acquisition expands Dragonfly's investment platform to include three distinct entities: Dragonfly Ventures, Dragonfly Liquid (launched in June 2025), and MetaStable, strengthening its multi-strategy approach across venture, liquid, and hedge fund strategies.
- • The deal reflects continued consolidation in crypto asset management and follows Dragonfly's $650 million fourth venture fund close in 2025, signaling institutional confidence in the sector despite broader crypto M&A volatility.
Summary
Dragonfly, a cryptocurrency-focused venture capital firm, has completed the acquisition of MetaStable Capital, one of the longest-running hedge funds in crypto history. MetaStable was co-founded in 2014 by Naval Ravikant and operated as an early-stage investor in foundational blockchain projects. The acquisition terms were not disclosed, though MetaStable reported supervising over $400 million in assets under management as of July 31, 2022, according to Bloomberg reporting.
The hedge fund built a portfolio of prescient early-stage investments across multiple major blockchain ecosystems. MetaStable's portfolio includes stakes in Ethereum, Avalanche, Cosmos, StarkWare, NEAR Protocol, Zcash, Filecoin, Dfinity, and Algorand—representing some of the most significant cryptocurrency infrastructure and application layer projects. This track record positions MetaStable as a historically significant allocator within the digital asset space.
Dragonfly managing partner Haseeb Qureshi, who previously held a partner position at MetaStable before joining Dragonfly, facilitated the integration. In announcing the transaction via Medium, Qureshi emphasized Dragonfly's competitive positioning around global market approach and deep technical expertise. The rebrand, which removes "Capital" from the MetaStable name, integrates the acquired hedge fund into Dragonfly's broader multi-platform strategy alongside Dragonfly Ventures and Dragonfly Liquid, a cryptocurrency liquid fund launched in June 2025.
The acquisition follows Dragonfly's successful $650 million fourth venture fund close in 2025, exceeding its initial $500 million target by 30%. The consolidation underscores institutional appetite for integrated crypto asset management despite broader volatility in cryptocurrency M&A—evidenced by Galaxy Digital's withdrawal from its BitGo acquisition announcement on the same day. Industry research indicates crypto M&A transactions remain on pace for a record year despite selective deal reversals.
The hedge fund built a portfolio of prescient early-stage investments across multiple major blockchain ecosystems. MetaStable's portfolio includes stakes in Ethereum, Avalanche, Cosmos, StarkWare, NEAR Protocol, Zcash, Filecoin, Dfinity, and Algorand—representing some of the most significant cryptocurrency infrastructure and application layer projects. This track record positions MetaStable as a historically significant allocator within the digital asset space.
Dragonfly managing partner Haseeb Qureshi, who previously held a partner position at MetaStable before joining Dragonfly, facilitated the integration. In announcing the transaction via Medium, Qureshi emphasized Dragonfly's competitive positioning around global market approach and deep technical expertise. The rebrand, which removes "Capital" from the MetaStable name, integrates the acquired hedge fund into Dragonfly's broader multi-platform strategy alongside Dragonfly Ventures and Dragonfly Liquid, a cryptocurrency liquid fund launched in June 2025.
The acquisition follows Dragonfly's successful $650 million fourth venture fund close in 2025, exceeding its initial $500 million target by 30%. The consolidation underscores institutional appetite for integrated crypto asset management despite broader volatility in cryptocurrency M&A—evidenced by Galaxy Digital's withdrawal from its BitGo acquisition announcement on the same day. Industry research indicates crypto M&A transactions remain on pace for a record year despite selective deal reversals.
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