Pantera Digital Asset Fund Loses Nearly 50% in March

Pantera Capital has returned 25 000% over its lifetime

by Marin Marinov
11 April • 2 min
In Markets

US-based crypto fund Pantera Digital Asset Fund lost 45.7% of its value in March due to the volatility in Bitcoin (BTC), an investor letter obtained by CNBC showed on Tuesday.

The fund, which is part of Pantera Capital, a venture investment firm focused on digital assets, invests mainly in BTC and Bitcoin-related assets.

“We are in a market with around 100% annualized volatility and this month was the worst month in our model`s 27-month history,” Joey Krug, co-chief investment officer of Pantera Capital, wrote in a letter to clients as quoted by CNBC.

Cryptocurrency volatility

The surge in Bitcoin at the end of last year helped Pantera Capital record a return of 25 000% over its lifetime. But BTC volatility in recent months dented its funds’ performance.

Digital Asset Fund is down 54.9% year to date, but still up 10.3% life to date, according to the letter. Pantera Bitcoin Fund and ICO Fund are down by more than 50% this year, but are up 10 000% life to date for BTC Fund and more than 90% for the ICO investment arm.

Pantera’s performance reflects the recent problems in the crypto fund industry, which has been losing pace this year as digital coin prices have dropped from record highs. At least nine funds have already closed since the start of 2018 and up to 10% are expected to close by year-end.

Pantera Capital

Pantera Capital is one of the first crypto asset investment companies and it manages assets of more than USD 724 million. Pantera was founded in 2013 by Dan Morehead, a former CFO at Julian Robertson`s Tiger Management hedge fund and former global head of foreign exchange options at Deutsche Bank. Morehead is currently CEO of Pantera Capital and Chairman of Bitcoin exchange Bitstamp.

Pantera Capital created Bitcoin investment fund with Fortress Investment Group, Benchmark and Ribbit Capital in 2014. Last year, Morehead`s company made its first major venture crypto exit, selling its share in Korean crypto exchange Korbit. The exchange was sold to Nexon for a total of USD 150 million.

Pantera Capital has invested in Bitcoin (BTC), Zcash (ZEC) and Ripple (XRP) from cryptocurrencies, in some crypto exchanges such as Bitstamp, Shape Shift and Kyber Network and in blockchain-based companies such as digital wallet and open code game True Flip.