The value of Pantera Capital's crypto hedge funds have lost two zeros, while its Bitcoin Fund has grown by 10.000%

The value of Pantera Capital's crypto hedge funds have lost two zeros, while its Bitcoin Fund has grown by 10.000% - maxresdefault 1024x576Heavy losses are swinging the crypto-asset funds at Pantera Capital, one of the oldest cryptocurrency investment managers, and creating a stark contrast to the gains of its bitcoin fund.

The divergence of hedge and bitcoin funds

Pantera Capital's flagship bitcoin fund - a fund that has held BTC since 2013 and bitcoin cash (BCH) since 2017 - lost 75,6% in 2018 of the quotation and gained 87,7% in 2019, according to internal reports.

The past two years have brought bitcoin fund returns to an all time high of 10.162%, down 54% from the peak of 22.321% in 2017, but still far above elite fund returns.

More recently, three Pantera Capital hybrid hedge funds created in 2017 have been highly negative, suggesting that access to business was not indicative of investment performance and that the new instruments were highly risky or difficult to actively manage for the firm.

The most exotic investments in the digital asset fund were ERC-20 tokens and contracts on Augur, a crypto-betting portal created by Pantera Capital's investment manager, Joey Krug.

Dan Morehead, Tiger Management's first Chief Investment Officer and former Chief Financial Officer, founded Pantera Capital in 2013. The cryptocurrency investment company recorded $ 470 million in asset under management (AUM) through seven non-venture and venture funds eventually fiscal year 2019.

The passive bitcoin fund had $ 110 million, the three hedge funds had $ 90 million, and the three venture capital funds had $ 270 million. About $ 95 million went to the first two risk funds. The third venture capital fund has raised $ 175 million since 2018 to invest in cryptocurrency companies of all sizes.

The dynamics of funds

Pantera Capital's track record highlights how market forces can shape a fund's performance. The best year, 2017, driven by an upward breakout in cryptocurrency prices, returned regular and long-term returns of bitcoins, digital assets and ICO funds with increases of 1,565%, 145,6%, 347,6 respectively. 6% and XNUMX%.

The worst year - 2018, led by a crypto-market crisis - cut 87,2% from the digital asset fund, 83,1% from the regular ICO fund and 9,6% from the ICO fund to long term. However, the weather could turn the situation around.

Furthermore, the presence of institutional investors did not immunize Pantera capital from the volatility of virtual currencies. At least $ 100.000 is required to invest in the four Pantera Capital funds.

Regulatory barriers could be responsible for the volatility of the cryptocurrency market. Some Panco Capital ICO investments have been entered into with Simple Agreement for Future Tokens (SAFT), investment contracts aimed at framing plans with crypto-assets in existing securities laws.

Pacification is not a guarantee in the United States, Pantera Capital's reference base, and could explain the shortcomings of the ICO investment model.