Though the recent months haven’t been very good for the crypto industry, this could not deter some crypto investors from being bullish about this market.
One such investor is Dan Morehead, the head of Pantera Capital (a US-based asset management company), who is in the process of launching a second blockchain fund of $1.25 billion to revive the starving crypto industry with the huge inflow of investments.
Introduced in June 2021, Pantera’s blockchain fund makes investments in various investment avenues, such as venture equity, early-stage tokens, and liquid tokens. Only qualified buyers can make investments in this fund with a minimum investment requirement of $1 million.
Meanwhile, according to Bloomberg, Pantera founder Dan Morehead revealed at an event in Singapore on Wednesday that the business intends to seek $1.25 billion for a second blockchain fund. Pantera plans to close the fund in May, according to Morehead, and it will invest in stock and digital currencies. If the second blockchain fund closes as expected, it will be second in line with Pantera’s first, $600 million-targeted blockchain fund, which was launched in June 2021.
Morehead was reported by Bloomberg as stating, “We want to provide liquidity for people that are kind of giving up because we’re still very bullish for the next 10 or 20 years. Unfortunately, crypto pricing has become correlated with risk assets, which I honestly don’t think has to be true. My hope is that soon crypto will decouple from the macro markets,”.
This fund aims to capitalize on institutional investors’ increasing interest in digital currencies and assets. The company wants to use this money to restore the industry’s funding after previous downturns left it in financial straits. The fund intends to assist emerging Web3 and blockchain initiatives to offset the effects of the current market downturn as nations across the globe continue to tighten the regulatory landscape surrounding cryptocurrencies.
Although the first blockchain fund was introduced in 2021, Pantera’s interest in cryptocurrencies dates back to a time when only a few investors were familiar with the name “Bitcoin.” The company launched its crypto fund in the year 2013 at a time when the price of this crypto was below the mark of $100. Nonetheless, the company was certain about the growth of Bitcoin in the upcoming years, and the rest is history.
The Way Forward
Pantera has been known for investing in emerging technologies. It has recently made investments in revolving games, Stride and Pinata. The company is already promoting the blockchain and crypto industries with its blockchain fund, crypto fund, and other venture-style funds.
After its downfall in mid-June, the cryptocurrency market has been essentially in a state of limbo in recent weeks. Ever since, the market capitalization of the cryptocurrency sector has fluctuated underneath the $1 trillion threshold, whereas the traditional industries are likewise in a state of flux.
In light of the existing state of affairs, the launch of this blockchain fund can help reinforce the investors’ confidence in these digital assets and will contribute to the growth of this market in the long run.