Pantera Capital Management, an investment firm focused on ventures related to blockchain technology and digital currencies, has begun aggressively adding cryptocurrencies to its venture capital fund. The efforts highlight a shifting strategy by the group to provide investors with new levels of exposure to blockchain currencies.
The agenda comes at an explosive time for blockchain currencies, with bitcoin, Ethereum, and other digital currencies seeing tremendous gains in recent months. With rapidly increasing prices and consequent interest from investors, Pantera Capital has opted to embark on a new form of fundraising, strengthening its focus of venture capital funds.
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Pantera Capital presently manages a fund that invests in bitcoin – Fortress Investment Group maintains a stake in the group. However, the $25 million venture capital fund is much more diverse and will feature digital coins other than bitcoin as well. In tandem with this, the group unveiled plans to buy tokens of 0x, a decentralized cryptocurrency exchange protocol, when it holds its initial coin offering, according to a Bloomberg report.
Pantera Capital is the latest group to dedicate specific funds to digital currencies, joining the ranks of San Francisco-based firms Blockchain Capital and Polychain Capital. This trend could continue to grow as token issuance has also swelled over the past two years, climbing to nearly $600 million in sales – just one year ago, this segment saw a figure of just $100 million. The largest driver of this has been bitcoin, which recently set record highs in valuation; several other blockchain currencies such as Ethereum are also operating at all-time highs.
Ultimately, bringing a larger number of institutional investors into the fold should also help fuel growth for the fund itself at Pantera Capital. For now, a steadfast increase in and appetite for blockchain currencies should kindle interest in the venture capital fund at Pantera Capital that has been opportunistically adding exposure via multiple digital currencies.