Pantera Capital Creates ICO Hedge Fundbr>
Bitcoin hedge fund Pantera Capital is hoping to become the first bitcoin investment company to offer an initial coin offering (ICO) hedge fund.
The company has filed with the US Securities and Exchanges Commission (SEC) for an ICO hedge fund. Called Pantera ICO Fund LP, the fund will focus on investments solely in tokens that power public blockchain protocols. The fund will be open to private and institutional US-based investors. The company also plans to open up to non-US investors in the future.
Pantera founder Dan Morehead said they will purchase pre-sale ICOs, as they aim to buy tokens prior to the public sale, then again in the public auction. Thus, they will have a discount to the ICO price by getting in early, when it’s just a team and a whitepaper. The fund will provide the right connections concerning marketing, recruiting or business development. Morehead thinks there are 10 exchanges Pantera might use, including Bittrex, Kraken and Poloniex. The team is currently tracking 30 deals.
Pantera Capital hopes to raise $100 million by the end of summer. The fund has already garnered $35 million from the firm’s existing investor base, undisclosed new investors, and unnamed venture capital firms.
Morehead said that the team has been working for months to set up a couple of fund entities. The hiring of Joey Krug, who previously co-founded Augur, was part of the strategy. Krug will be co-managing the new hedge fund.
“The #1 reason for startup failure is due to lack of product-market fit, which Augur will never achieve if it is not liquid, said Krug. “By partnering with Pantera, I can help make a big dent in this problem. For Augur to succeed, it needs fair prices and solid spreads. Dan Morehead at Pantera was previously CFO at Tiger Management and has managed billions of dollars in assets, so if anyone knows trading in the blockchain industry, it is him.”