This year's approval of spot bitcoin exchange-traded funds in the U.S. has provided substantial validation for the crypto industry, according to Pantera Capital general partner Franklin Bi, as the crypto venture capital firm is raising a new mega $1.25 billion fund.

While Bi declined to comment specifically on Pantera's new fund, he told The Block in an interview that this is an opportune time for venture firms, in general, to raise new capital and position themselves to support emerging startups.

Bi said that the spot bitcoin ETF approval "validated significantly" the crypto industry. The approval "has really shown people that directionally speaking, regulation is still moving in a positive direction for digital assets," he said. "That kind of validation has really solidified a lot of …