Cryptocurrency venture capital such as Pantera, returns trend upward in 2023

10 months ago 40

Increased returns of Pantera Capital and others

Pantera Capital’s Liquid Token Fund, a major U.S. cryptocurrency venture capital (VC), has recovered this year from a decline in 2022, with returns of nearly 80% as of mid-December. Other VCs are also increasing their returns. Bloomberg reported.

Pantera Capital has rebounded from an 80% negative return in 2022. This fund consists of highly liquid tokens, etc., and is currently investing a large amount in the governance token “DYDX” of the decentralized derivatives exchange dYdX.

Additionally, investments in Bitcoin (BTC) and Ethereum (ETH) collectively account for less than 40% of the portfolio.

connection:dYdX Chain (α version) mainnet launch, stress test

In addition, Chainview Capital has returned 100% since the beginning of the year, and Stoka Global, which mainly invests in altcoins, has recorded a return of 268% as of the end of November.

Since 2022, virtual currency-related venture capital has been in a difficult situation due to the collapse of FTX and limited access to banking services in the United States. Of the 712 funds in operation at the beginning of 2023, 462 have survived to date.

Expectations are high that a Bitcoin spot ETF will be approved in 2024, and with Bitcoin prices recovering, some say the outlook for these funds next year is positive.

connection: Grayscale also adopts “Cash only” Bitcoin ETF model with proposed amendments to SEC

For example, Alt Tab Capital CEO Greg Moritz said he expects his fund to rise 30% and is poised for a bull run.

Alt Tab Capital has 2% of its assets stuck on the failed FTX platform and is in the process of selling its holdings on the secondary market.

Pantera Capital founder Dan Morehead has refuted the critical remarks made by the vice chairman of US investment company Berkshire Hathaway regarding the rapid rise in Bitcoin.

connection: Founder of Pantera Capital: “Berkshire Hathaway Vice Chairman’s criticism of Bitcoin is laughable”

What is an ETF?

Abbreviation for “Exchange Traded Fund.” Refers to investment trusts listed on financial instruments exchanges, where a wide range of financial products, not just virtual currencies, are traded.

Virtual currency glossary

US MicroStrategy increases Bitcoin purchases

U.S. company MicroStrategy, which is known for holding Bitcoin as a financial asset, is buying more Bitcoin, partly due to expectations for the approval of a physical ETF.

connection: MicroStrategy bought $615 million worth of virtual currency Bitcoin in December

Michael Saylor, the company’s executive chairman, said a Bitcoin spot ETF would not make the company’s stock any less attractive. He explained that, unlike ETFs, the company’s shares have the advantage of providing leverage and not charging fees.

connection: “Bitcoin ETF is not a threat to the company’s stock” MicroStrategy Chairman Thaler