In a confidence boost to the cryptocurrency market, leading Silicon Valley venture capital firm Andreessen Horowitz today launched its first dedicated crypto-focused fund to invest in crypto companies and protocols.

The a16z crypto fund, which starts with $300 million in its investment kitty, will be co-led by former U.S. Department of Justice federal prosecutor and Coinbase Inc. board member Katie Haun and existing Andreessen Horowitz General Partner Chris Dixon.

Described as being “designed to include the best features of traditional venture capital, updated to the modern crypto world,” the fund will invest in crypto companies and protocols with a view to holding investments for at least 10 years.

Those investments include buying cryptocurrencies themselves by being an “all weather” fund that plans to invest over time, regardless of market conditions. “If there is another ‘crypto winter,’ we’ll keep investing aggressively,” Dixon said Monday in an introductory blog post.

In addition to investing in existing cryptocurrencies, with bitcoin and Ethereum mentioned by name, the fund is also providing operational support to startup companies it invests in, delivering its customary “deep expertise in executive and technical recruiting, regulatory affairs, communications and marketing and general startup management.”

Although this is the first dedicated crypto fund by Andreessen Horowitz, it’s far from the first investment in the market by the firm, co-founded by Marc Andreessen (pictured). Its investments up to now include Coinbase as far back as 2013 and, more recently, Polychain Capital, among others.

A16z crypto is one of a growing number of crypto funds established recently. It’s not the largest one: Binance Ltd. announced a $1 billion fund June 1 that will invest in blockchain and cryptocurrency startups.

Where Andreessen Horowitz does stand out is the credibility its name brings to the crypto market. The firm is one of the most famous in the VC space and has been an early investor in dozens of major companies that have gone on to market leadership or massive exits. The fact that it has set up a dedicated crypto fund will be noticed far and wide, since if Andreessen Horowitz thinks there are profits to be made here, others may follow in kind.

At the same time a16z crypto was announced, the overall cryptocurrency bear run that started at the beginning of the year continued apace. Bitcoin hit its lowest price in nine months, trading as low as $5,786.29 Sunday before it recovered to 6,234.62 as of 11:15 p.m. EDT Monday. Ethereum bottomed at $440.52 at the same time before recovering to $458.02, while Ripple XRP hit a low of 46 cents, recovering slightly to 48.1 cents.

Photo: Flickr/jdlasica