Crypto hedge funds suffered through a long bear market in 2018 and for a large part of 2019, but based on Pantera Capital’s recent earnings report, it seems 2020 has been an excellent time for crypto hedge funds to make big profits.
Specifically, Pantera Capital has announced that for the first half of 2020 their Bitcoin fund is up 61%, their digital asset fund is up 168%, their initial coin offering (ICO) fund is up 323%, and their long term ICO fund is up 270%. To put this in perspective, Pantera Capital now manages $195 million of crypto.
Apparently Decentralized Finance (DeFi) projects and their associated tokens played a major role in Pantera Capital’s first half earnings, specifically Yearn Finance’s YFI, Terra’s LUNA, Polkadot’s DOT, Flexa’s AMP, and Ampleforth’s AMPL.
Notably, thanks to the big earnings from investing in DeFi projects, Pantera Capital has beat the profit percentages of the S&P 500 and every index and hedge fund.
Literally, a crypto hedge fund holds the top spot for the most profitable hedge fund in the world for the first half of 2020, and that says a lot about crypto’s institutional investment potential.
Another notable stat is that Pantera Capital’s Bitcoin hedge fund now has a life-time profit of 16,361%, up from 10,162% at the beginning of the year. Literally, $1 invested when the fund started has now turned into $163.
Thus, although during 2018 and 2019 it appeared that crypto hedge funds were doomed to fail, crypto hedge funds have come roaring back to life as proven by Pantera Capital’s major profits in the first half of 2020.