The American Bitcoin (BTC) fund Pantera Capital is raising an additional $5 million from investors.
This brings their allocated assets reserved exclusively for the largest crypto currency to 134 million dollars. Coindesk reports that this has been reported to the US Securities and Exchange Commission.
Pantera Capital Fund Ltd. was founded in 2013 by Dan Morehead, making it one of the pioneers in the investment community in America.
Through a fund, high net worth individuals and ’smart money‘, for example, can get exposure in Bitcoin without having to buy and store themselves.
Bakkt, known for its futures, is custodian for Pantera Capital. They store the private keys of the Bitcoin.
The performance of the Pantera fund varies from year to year. In 2017, with a return of 25,000% (!), it set a record.
So far, 2020 is also a good year for the crypto currency, which started the year with a price of $7,200. The return at the time of writing is 154%.
The current trend in the market is that larger companies dominate the market more than smaller retail investors. A difference with the market of 2017 when it was more retail driven because of the Initial Coin Offering hype that was going on at that time.
Now there seems to be more organic growth, with companies like PayPal, Square and Grayscale being there like the chickens to buy new Bitcoin. In fact, PayPal and Square are buying more together per week than they are mined in a week.
They serve (potentially) several hundreds of millions of bitcoiners that are still precoiners. They are also obliged by regulation to actually hold Bitcoin at a ratio of 1:1 for each offered Bitcoin.
Funds will also have to work through their channels in order to obtain new stock to serve their customers (the investors who invest in their fund).
CEO Dan Morehead is not averse to bold price predictions. His call of $65,000 at the end of 2019 did not come true. As a ‚major shareholder‘ in Bitcoin, he also has every interest in letting the price rise.