Hedge fund CEO Dan Morehead bullish on Crypto

February 9, 2018

Pantera Capital hedge fund CEO Dan Morehead is a betting big on Crypto assets.  He started his first crypto fund in 2013. He is one of the most successful fund managers in this space.  As per Hedge Fund Research institute (www.hedgefundresearch.com), this fund has seen returns of 22,000 percent.

In 2017 Pantera Capital launched an ICO and a digital asset fund. https://www.coindesk.com/100-million-pantera-capital-ico-hedge-fund/

In addition to the first bitcoin fund, Pantra has six other funds all exclusively in cryptocurrencies or blockchain technology.
 

Transcription from Yahoo News –

Bitcoin could fall 50% you are almost exactly right. It’s about what it is down from its high. So what is your strategy now?

Yeah, we are certainly aware that it is a very speculative market. “We’re certainly aware it’s a very speculative market,” said Morehead, who first bought bitcoin for $72 and watched the digital coins fall below $6,000 earlier this week. “It’s volatile on the upside. It can be volatile on the downside.” In December, he predicted the coins would fall by 50 percent before the next big surge.

But we had a 64% fall from its peak to the trough a couple of days ago. And that is exactly the average decline in the bitcoin market over the last seven bear market cycles. So the past doesn’t predict the future, but it seems like this is about the right downdraft. The other stats to note is that it typically has had an on the average a 71 day bear market and we are 52 days into this.. So it seems like another couple of weeks and everything will be normal, and it can start growing again.

Why, What’s going to normalize about this market then?

The fundamentals are fantastic. And we can go over those separately. Bitcoin should return to peak levels in the next couple of weeks and will continue growing from there”

“There’s such an institutional appetite to get exposure to this,”  “It’s a half-a-trillion-dollar asset class that nobody owns. That’s a pretty wild circumstance.” And it’s also go 0.1% correlation to the rest of the financial markets. Greg was talking about risk on, risk off. Almost everything else in the world is highly-highly corelated to plus one or negative one.

The IRS ruled on Bitcoin many years ago that it was a property and so you get long-term capital gains tax treatment if you hold it for a year. The CFTC’s been very progressive about this and now we have CFE futures on Bitcoin. And the SEC’s ruled a few things are securities and should be registered. But in general, it’s allowed the market to develop. So the pace so far has been good from the regulatory bodies. And little more regulation is probably helpful.

Has futures helped capital flow and help expand your capital base and put it to work?

I think the future’s are a very small small part of the industry. And it’s much like the fiat currency Market. It’s almost all exclusively cash trading and not much in futures.

 

Is it the tokens the platforms or the developers on the platforms that is most interesting right now?

Currencies Are interesting to trade. And are long short has fun does trade Bitcoin, Ethereum. For my mind the most interesting bit Are these new protocol tokens icos as they are called Because they are kind of like the small caps of the industry.

https://www.panteracapital.com/portfolio/

https://www.bloomberg.com/news/articles/2018-02-02/big-investors-circle-telegram-offering-as-crypto-insiders-pass

https://techcrunch.com/2018/01/31/ico-rounds-are-coming/

https://www.coindesk.com/tokens-investors-talking-boost-compound-pantera/

https://www.forbes.com/sites/kevinharris/2017/12/19/advice-from-crypto-fund-manager-up-25000/2/#54b7d21c6464

http://www.morningstar.co.uk/uk/news/164692/expect-more-bitcoin-funds-to-launch.aspx

https://www.coindesk.com/pantera-leads-5-million-investment-in-video-streaming-token-pre-sale/

https://www.bloomberg.com/news/articles/2017-10-03/hedge-funds-flip-icos-leaving-other-investors-holding-the-bag

https://www.coinspeaker.com/2017/08/31/pantera-capital-invest-maecenas-token-crowdsale/

https://www.coindesk.com/tokens-investors-talking-boost-compound-pantera/

https://www.coindesk.com/pantera-invests-3-million-sharing-economy-token-origin/