Pantera Capital CEO: A Bitcoin ETF is ‘Years Away’

Pantera Capital CEO Dan Morehead believes a Bitcoin-ETF approval is insignificant in comparison to Bakkt and Fidelity launching cryptocurrency trading platforms for institutional investors.


Too Early for a Bitcoin ETF, Says Pantera Capital CEO

Yesterday, Pantera Capital founder and CEO, Dan Morehead spoke with Messari director of business development and panel moderator Katherine Wu at Bloomberg’s Institutional Crypto Conference.

Pantera Capital has made media waves lately as the firm is one of the first blockchain investment firms and a recent statement to investors floating around Twitter showed the firm’s investment portfolio down 73% on their cryptocurrency investments.

While speaking about the future of cryptocurrency Morehead downplayed the urgency and importance of an exchange-traded fund (ETF) backed by Bitcoin 00.

Dan Morehead

When asked about whether the approval of a Bitcoin ETF and the belief that this would bring about a strong trend reversal held merit, Morehead said, “I think an ETF is years away.”

He explains that “very few people know that the last asset class that was certified for an ETF was copper. It took three years, even though copper has been around for 8,000 years.”

Investors, Curb Your Enthusiasm!

According to Morehead, “an EFT is not news” and the fact that everyone is hinging the future success of cryptocurrency on its approval is a bit naive. Morehead poetically opined that:

The SEC doesn’t want widows and orphans buying Bitcoin ETFs. They don’t even know if Bitcoin is officially a security.

Regarding recent Bitcoin ETF postponements and rejections, Morehead suggested that it is much too early for market makers to seek approval for such an instrument as the cryptocurrency market is still in its infancy and that profit savvy investor “overreacted.”

Basically, the CEO is suggesting that cryptocurrency investors pump the brakes and play the long game as the real noteworthy news events are “the Fidelity and the Bakkt thing.”

Fidelity

Even though Bakkt is scheduled to launch next month and Fidelity just launched their crypto platform for institutional investments, Morehead says,

When we look back at this five years from now, I think those are going to be the events that spurred an enormous amount of capital into the industry.

Morehead echoes former Goldman Sachs partner, Mike Novogratz, who puts the start of real institutional flows into cryptocurrencies for the same time period, namely Q1 and Q2 2019.

Bitcoinist also reported in July that the final decision for the SEC to rule on the SolidX/VanEck Bitcoin ETF is expected sometime in February or March 2019, according to legal expert, Jake Chervinsky.

Do you think the SEC will approve a Bitcoin-ETF anytime soon? Share your thoughts in the comments below! 


Images courtesy of Shutterstock

Pantera’s Digital Asset Fund Sees 72% Decrease YTD

Pantera Capital’s Digital Asset Fund underperforms Bitcoin year-to-date, marking serious declines downwards of 70 percent. The fund’s compound annual growth rate (CAGR) is also negative 50 percent.A


A Rocky 2018

The entire cryptocurrency market saw around $600 billion being wiped off its sheet in 2018. Bitcoin (BTC) [coin_schedule], the world’s largest cryptocurrency, marked a decrease of around 70 percent since its all-time high (ATH) values in January.

One of the largest digital asset hedge funds, that of Pantera Capital, released some alarming figures, outlining a 72.7 percent decline YTD. In August alone, the fund lost about 22.3 percent of its value. In aggregation, the fund is down 40.8 percent since inception, which is December 2017.

Earlier in April, the CEO of Pantera Capital Management Dan Morehead outlined that, at the time, Bitcoin was a “screaming buy.” At that point, Bitcoin was trading at around $9,000, more than 25 percent higher than its current price.

In June, Morehead once again noted that “it’s a very good time to buy” Bitcoin.  Since then the cryptocurrency market’s first and foremost has lost yet another 10 percent of its value.

Dan Morehead

Not the Only Ones

Pantera’s Digital Asset Fund is not the only one in the red in 2018. Grayscale Bitcoin Investment Trust is also sitting at its lowest point since the ATH values in last year’s price rally.

Nevertheless, irrespective of the market’s poor performance in 2018, bullish sentiment can still be noted. According to a recent survey carried out by Fundstrat Global Advisors, institutional investors are bullish on the prices of cryptocurrencies, with 59 percent of them holding that prices will surge throughout an economic crisis.

Another rather interesting sentiment can be noted in Fundsrat’s survey. According to its findings, 54 percent of institutional investors hold that Bitcoin has already bottomed.

What do you think of the current state of the cryptocurrency market? Don’t hesitate to let us know in the comments below!


Images and media courtesy of Shutterstock, Twitter/@CollinCrypto/@dan_pantera.

Pantera Working to Raise $175 Million for New Blockchain Venture Fund

Crypto-focused investment firm, Pantera Capital, has stated that it is hoping to raise $175 million for its next venture, and are reportedly more than half-way there already.


Being at the forefront of cryptocurrency advancement is expensive work, just ask Paul Veradittakit, firm partner at Pantera Capital. According to Tech Crunch, one of the industry’s biggest investment firms is looking to raise a total of $175 million in its latest round of fundraising.

This is seven times more than its previous venture fund, which was set at $25 million, which itself was nearly double the amount of its first fund of $13 million. Veradittakit says that this upward trajectory is a “function of how fast the space is moving, the talent coming in, the opportunities, and the sizing of rounds. With more interesting later-stage investments [on our radar], too, we want to be flexible and able to move with the market.”

Pantera Seems to Be on Track

While this number may seem astronomical, a report by the US Securities and Exchange Commission (SEC) dated the 15th of August shows that the firm has already raised over $70 million from 90 investors. However, according to CNBC, that total is actually closer to $100 million. The date of the first sale is listed as the 31st of July.

Pantera has a range of investment options for those interested in the cryptocurrency market. One is a fund dedicated to ICOs. Another is the firm’s Bitcoin Fund, which made headlines at the end of last month when Pantera announced lifetime returns of over 10,000%.

Another fund deals with investing in existing exchange-listed cryptocurrencies through ML-based algorithms and actual input from some of the firm’s main members.

Veradittakit explained that this could be a good option if:

…you aren’t sure that Bitcoin will remain the dominant cryptocurrency, or you’re interested in other use cases that may arise, or you just want to build a diversified portfolio of assets that have asymmetrical returns as bitcoin, or maybe return even more because they feature lower valuations.

Pantera has invested in plenty of well-known platforms in the industry including Ripple and Circle. Veradittakit added that:

[Pantera has invested in] lots of wallets and exchanges focused around the world, in Coinbases of different geographies, in enterprise-related blockchain companies. More recently, we’ve funded everything from big data to decentralized application platforms.

Shifting Focus

The newest venture fund is more focused on blockchain technology or more specifically, receiving equity in blockchain companies. Veradittakit touched on this new direction a bit:

We’re seeing a shift in momentum. We’re seeing a lot more interesting VC deals, and more equity deals this year than ICO deals.

The firm’s CEO, Dan Morehead, recently reiterated his belief in Bitcoin stating that while the price is low now, this won’t always be the case. He added that Bitcoin could grow quite significantly “a year from now”.

Do you think Pantera Capital will reach its $175 million goal? Let us know in the comments below!


Images courtesy of ShutterStock

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