Pantera Capital Hedge Fund Lost 50% of Assets in March

This month was the worst month in our model's 27-month history, co-chief investment officer of thee fund said
11 April 2018   498

Specializing in blockchain industry investments venture company Pantera Capital announced that its digital assets fund lost nearly half of its funds in the past month. The company stated this in a letter to investors, CNBC reports.

This was a really rough month for the Digital Asset Fund and the space in general. We're in a market with around 100 percent annualized volatility and this month was the worst month in our model's 27-month history.
 

Joey Krug

Co-chief investment officer, Pantera Capital,

The message notes that since December 1, 2017, the fund of digital assets has lost only 3.1% in comparison with bitcoin, which for the same period fell by 37.4%. At the same time, for last March, Pantera assets decreased by 45.7%.

This performance is basically in line with our expectation — given the huge move in the market as a whole.
 

Joey Krug

Co-chief investment officer, Pantera Capital,

At the same time, bitcoin fell by 34% between March 1 and April 1. BTC started the month at a level higher than $ 10,000, after which it began to slip smoothly into the area of ​​$ 6,000 after the statements of a number of regulators and increased sales activity on the eve of the tax season.

It is noted that 2017 was a record year for bitcoin - the coin grew by more than 1300% and almost reached $ 20,000. This helped the Pantera Capital fund increase its assets by about 20,000% by December. In a letter to investors, it is also said that despite a fall of almost 50%, the fund still boasts an income of more than 10,000% since its inception in 2013.

Also, cryptocurrency transactions are subject to capital gains taxes, so Pantera and other investors attribute the current price pressure to "investors beginning to realize tax obligations."

A portion of the selling pressure on the market in general has been unintended tax positions. There were $300 billion of capital gains created last year. That could have caused a decent chunk of the sales.
 

Dan Morehead

CEO and co-chief investment officer, Pantera Capital

It is noted that bitcoin became one of the main reasons for the negative results of the fund in March. This year, BTC lost more than 50% and at the time of publication is trading around $ 6,800. In turn, the fall in the rate of Ethereum, Dash and Waves also proved to be one of the main negative factors, the message says.

At the same time, representatives of Pantera announced investments in the Ethereum competitor, but noted that they can not yet announce the name of the company.

If you had a portfolio of IPOs — one was Pets.com and one was Amazon.com — it doesn't matter what the rest were. You made a great return.
 

Dan Morehead

CEO and co-chief investment officer, Pantera Capital

Last month, Pantera Capital, which manages assets worth about $ 724 million, also announced the launch of a third venture fund aimed at blockchain. It was noted that the new organization will concentrate on P2P-transactions, fintech, artificial intelligence and machine learning.

SEC to Need More Info on BTC ETF

SEC is gathering more input from the public – to date, according to the agency, more than 1,400 comments have been submitted
21 September 2018   134

The US Securities and Exchange Commission (SEC) announced the beginning of a formal process for considering the application for the creation of bitcoin-ETF from the New York companies VanEck and SolidX. Nevertheless, the agency appealed to the community for more information. This is stated in the document published on the SEC website.

Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.
 

The US Securities and Exchange Commission

At the moment, the SEC received about 1,400 comments.

According to the document, the Chicago Board Options Exchange (CBOE) has signed an agreement on the exchange of data on bitcoin transactions, trading and the state of the market with the cryptocurrency trading platform with Gemini.

The agency asked commentators to clarify the position of Gemini in the digital currency market and assess the likelihood of increased volatility at this site in connection with possible trades of bitcoin-ETF.

So, before September 30, the department had to decide on whether to approve, deny or initiate the proceedings. The SEC chose the latter, which is likely to delay the process until the next year.