The past few years have been so successful for most crypto hedge funds that they have mushroomed. Pantera Capital was one of the most successful. Now this fund has plans for a new fund.
Pantera sets up new crypto fund
In April, Morehead announced the existing Pantera Blockchain Fund to lift. About $1.3 billion in capital would be returned to customers. Pantera was still raising $600 million in funds in November, so they achieved a return of more than 100% without deducting the commissions. In the meantime, the market has fallen sharply.
Bloomberg has Spoke with Pantera Capital CEO Dan Morehead at a conference in Singapore. When he closed the first fund in April, he said he already had plans for a new fund. According to Bloomberg, he now wants to raise $1.25 billion from investors for this new fund. Besides in crypto companies, it will also invest directly in crypto.
He would like to close the old fund by May. “We want to provide liquidity for people who are more or less giving up because we are still very positive about the market for the next 10 to 20 years,” said Morehead.
Pantera Capital is seeking $1.25 billion for its second blockchain fund, founder Dan Morehead says https://t.co/H5AXy55hqa
— Bloomberg Crypto (@crypto) September 28, 2022
‘Crelationship between bitcoin and other assets is going to break’
Pantera also buys after prices have fallen so hard. “Unfortunately, crypto is still correlated with risky assets, which I honestly don’t think need to be,” he said. “My hope is that [deze correlatie] quickly disappears.”
Earlier this year, Pantera Capital described that US government bonds are in a huge bubble, which could break the correlation between traditional markets and cryptocurrencies. The US Treasury market would be worth $15 trillion too much, and that money would have to go somewhere.
Indeed, the market turned out to be in a bubble, and in the meantime it has fallen hard. But in the meantime, the green prices for bitcoin (BTC) and for the rest of the market have failed to materialize. Let’s hope the correlation breaks soon.