“The first hard part was actually deciding to launch a cryptocurrency fund when everyone else thought that was crazy,” – Dan Morehead
But people are not calling Morehead crazy now that Bitcoin has soared past $18,000 his hedge fund, Pantera Capital has made record-breaking returns for the company. The top-performing hedge fund in the world last year returned 148 percent, according to Preqin, a hedge fund tracker. But Pantera Bitcoin Fund returned a whopping – 25,004% at $15,500 per bitcoin.
Pantera estimated that in dollar terms, the fund has made $2.1 billion for its investors.
Obviously, the fund didn’t have to do much to earn those profits. Simply holding bitcoin was enough. Many of the investors in the Pantera fund have not enjoyed its full return. Some sold out when Bitcoin’s price was in a slow steady decline during 2014 and 2015. Others bought in during the current boom and have reaped only the returns that Bitcoin has experienced over the last year.
Mr. Morehead is not done though, with multiple plans to expand the fund into something bigger. Pantera has begun its own offerings with six other funds. Most recently, it began the Pantera Digital Asset Fund, which owns 25 virtual currencies, including several commonly known alt coins.