Sequoia Capital Partner Matt Huang will leave the firm to start a new cryptocurrency fund with Fred Ehrsam, co-founder of Coinbase, according to people familiar with the matter.

Sequoia will continue to invest in blockchain-related technologies and is making a substantial commitment to Messrs. Huang and Ehrsam’s new fund, a person familiar with the firm’s plans said.

Traditional venture firms have witnessed a series of departures by partners who are particularly interested in the emerging sector of crypto investing. Last year Joel Monegro, a Union Square Ventures analyst, quit and started a fund called Placeholder. Runa Capital’s Nick Tomaino left and went on to start a crypto-focused firm called 1confirmation.

Those personnel changes are happening at a contentious moment for venture firms, many of which are hesitant to make crypto investing a large part of their portfolios. At the same time, some of their investment partners want to dedicate much, if not all, of their time to the sector.

But some firms are choosing to create dedicated crypto funds to give more freedom to the partners most interested in crypto, keeping them within the fold of the firm. Chris Dixon, for example, is leading Andreessen Horowitz’s new crypto fund, as WSJ Pro Venture Capital previously reported.