- DeFi has turbocharged Pantera’s Capital Bitcoin and their hedge funds comprised of mixed cryptocurrencies
- Their bitcoin fund gained 61%, 168% growth in its digital asset fund
- 323% in Initial Coin Offering (ICO) and 270% for the long term ICO fund
Decentralized Finance (DeFi) in the past few months has seen the most advancements and also market growth. DeFi is advancing in vivid fintech application provided in cryptocurrencies; lending derivatives insurance. Ethereum, the second-largest crypto after Bitcoin, has witnessed the most action in DeFi.
Pantera’s Growth in DeFi Boom
One such company fruit the DeFi boom is Pantera. It has turbocharged Pantera’s Capital Bitcoin and their hedge funds comprised of mixed cryptocurrencies. In the period of eight months, from January 1 to August 31, Pantera witnessed exponential growth in their portfolios. Their bitcoin fund gained 61%, 168% growth in its digital asset fund, 323% in Initial Coin Offering (ICO), 270% for the long term ICO fund.
Panter’s fund recovery is remarkable as their funds in the year 2018 and 2019 lost heavily. Bitcoin funds of Pantera lost 75.6% in 2018 but gained 87.7% next year. Similarly, digital asset fund lost 87.2% and 1.9% in 2018 and 2019 respectively. The regular ICO and long term ICO funds also lost a significant portion in the past two years. This could also be related to the fact that in the past two years peak market capitalization had deflated between 35% to 100%.
Believing the investor letter from Pantera’s Medium blog, Yearn Finance’s YFI, Polkadot’s DOT, Flexa, AMP, Terra’s LUNA and Ampleforth’s AMPL DeFi tokens were the critical factors for Pantera’s massive growth. Not just DeFi but the year-to-date fund of the company was also outperformed by the index and the hedge funds and by the S&P stock index. The surge in DeFi in recent times can be compared with the 2018 ICO surge. As per DeFi pulse, decentralized exchanges have been shot up by $13 billion in September alone.
Pantera was one of the few largest investors with $144.63 million in Polkadot’s first ever token sale. Pantera was also the largest investor for Origin’s token sale, which is a decentralized data sharing protocol.
Dan Morehead’s Co-Chief Investing Officer, Joey Krug commented sharing his excitement that his company had started acquiring crypto assets in DeFi years back. In September’s Investor letter of Pantera, they mentioned the current DeFi projects of the market have live products to offer, something that was missing in the 2017 ICO surges.
Currently, as per Financial Sayings, Pantera’s crypto-asset funds value over $195 million, allowing investors to cash-out $100,000 bitcoin investments daily. If combined with the venture funds of Pantera, at present they are handling over $448.3 million.
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