Tuesday, November 29, 2022

VC Firm Pantera Capital Seeks $1.25 Billion Second Blockchain Fund

Crypto-based venture capital (VC) firm Pantera Capital is looking to take advantage of the growing interest of institutional investors in digital assets. To this end, the VC is planning to raise a second blockchain fund of $1.25 billion.

According to a Wednesday report by Bloomberg, Pantera’s plan was revealed by founder Dan Morehead at a conference held in Singapore. 

Pantera Capital to Invest In Digital Tokens and Equities

With the fundraiser expected to come to a close by next May, a large part of the fund will be focused on investing in digital tokens and equities.

The remaining part of the fund, however, will be used to buy additional shares. That is, of those companies where Pantera already invested and owns shares. This is because most of the shares the firm already bought have dropped in value as a result of difficult macroeconomic conditions. Morehead said:

“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.”

Institutional Investors Continue to Show Robust Interest In Crypto

The decision of Pantera Capital about a second blockchain fund shows that crypto still has the confidence of institutional investors. Although it is worth noting that the fundraiser comes at a time when there’s an active crypto winter in place. More so, several crypto firms have been forced into liquidation, especially since the Terra-LUNA crash in June.

Nonetheless, institutional investors continue to hold on to their firm belief in the long-term prospects of the crypto market. Just recently, CryptoMarketsBeat reported that the world leader in asset management, BlackRock, struck a massive deal with Coinbase. The deal would see them offer access to crypto trading services to institutional clients.

In the same vein, Pantera is looking to increase its crypto investments across the board with this new fund. Just about a year ago, the firm launched its first such fund targeting $600 million. However, that target figure was met and easily surpassed, rising above $1 billion, per Pantera.

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