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Back in 2013 the only people using Bitcoin, were drug dealers and crypto-nerds according to the popular media stories of 2013, but Dan Morehead decided to be one of the firsts to do something crazy. Back when Bitcoin was double digits and the name Satoshi wasn’t common knowledge, Dan Morehead, who founded Pantera Capital after a career at Goldman Sachs, said it was not an easy decision to create a Bitcoin-focused hedge fund in 2013, when Bitcoin was primarily known as a currency for online drug markets.

“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.

“There are a lot of famous people who have said Bitcoin is a joke,” he said “They might be right. But if they are wrong and it goes up 25 times, they are missing out on a huge trade.”

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