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Pantera Capital to Launch a $1.25 Billion Blockchain Fund

CEO Dan Morehead said Pantera Capital will complete its second blockchain fund by May 2023.

The American asset manager that specializes in cryptocurrencies – Pantera Capital – is looking to raise $1.25 billion for its second blockchain fund.

Not long ago, the head of the company – Dan Morehead – argued that the digital asset market had hit its bottom in June and a bull run is on the horizon.

‘Very Bullish’ for the Future
Pantera Capital introduced its first cryptocurrency fund in August 2020, when it raised $165 million.

In a recent interview, CEO Dan Morehead revealed that Pantera Capital intends to launch a second blockchain fund which will be significantly bigger than the previous one – $1.25 billion, to be completed by May next year.

Morehead said his company believes in the future development of the cryptocurrency industry, and that is why it focuses on such investments:

“We want to provide liquidity for people that are kind of giving up because we’re still very bullish for the next 10 or 20 years.”

The current condition of the sector, though, is not so optimistic. Today the global cryptocurrency market capitalization plunged below $1 trillion, while bitcoin trades at approximately $19,000 (a 70% decline compared to the all-time high price from November 2021).

According to Morehead, the unsatisfying performance of most digital currencies is because they are highly correlated with other risk assets. However, he expects to see the end of this trend soon, which would lead to a price expansion:

“Unfortunately, crypto pricing has become correlated with risk assets, which I honestly don’t think has to be true. My hope is that soon crypto will decouple from the macro markets.”

Morehead’s Crypto Predictions
At the beginning of the month, Pantera Capital’s CEO forecasted that the ongoing crypto winter will soon start to change. He compared it to other market declines that have happened in the past, which were later followed by bull runs:

“We’ve been through three big bear market cycles. I actually think we hit the lows in June, and we are on to the next bull market. It might be rocky and might take a while, but I think we are on to the next leg of a rally.”

A few weeks later, Morehead envisioned that billions of people will employ blockchain technology in their activities in the next four-five years. He claimed that this adoption could be another reason for a future price rally for many digital currencies.

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