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This Hedge Fund Now Has a 1,000x Profit on Bitcoin

Dan Morehead's Pantera Capital Management was one of the first funds to get into bitcoin (BTC) back in July 2013.

Nov 26, 2024, 8:12 p.m.
Dan Morehead, CEO of Pantera Capital, told his team in 2013 that bitcoin would "squeeze up like a watermelon seed.” (Getty Images)
Dan Morehead, CEO of Pantera Capital, told his team in 2013 that bitcoin would "squeeze up like a watermelon seed.” (Getty Images)

What to know:

  • Pantera Capital Management, which launched its Bitcoin Fund in July 2013, has seen a 1,000-fold increase with returns of over 132,118%.
  • The hedge fund started buying bitcoin back when one token cost $74.
  • Pantera CEO Dan Morehead believes that the cryptocurrency could be worth $740,000 by April 2028.

Pantera Capital Management’s Bitcoin Fund just hit a milestone: a 1,000-fold gain in the value of its crypto holdings since launch.

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Started in 2013 as one of the first investment products exposing customers to crypto, the fund has returned 131,165% after expenses and fees. As noted by founder Dan Morehead on X, the fund saw a huge surge following Donald Trump's election as U.S. president this month.

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To get started in bitcoin investing, the Bitcoin Fund bought 2% of the world’s bitcoin (BTC) supply when the cryptocurrency's price was around $74. BTC has skyrocketed over 120% in this past year alone, pushing it to a new all-time high just below $100,000.

“I think we should buy aggressively now,” Morehead wrote in a letter dated July 5, 2013, that he shared publicly Tuesday. “The price is going WAY UP. It's going to squeeze up like a watermelon seed.”

Years later, bitcoin is “still squeezing up like a watermelon seed,” Morehead wrote in a memo on Tuesday.

He predicts that the cryptocurrency could reach $740,000 by April 2028, which would translate into a $15 trillion market capitalization, due to the fact that 95% of financial wealth has not yet addressed blockchain, he said.

Morehead gave credit to institutional managers like BlackRock and Fidelty, both which launched spot bitcoin and ether exchange-traded funds earlier this year, for easing access to the industry and allowing exposure to their tens of millions of clients.

He also said that blockchain’s 15-year regulatory headwinds will now finally turn into tailwinds with the first pro-blockchain U.S. president taking office in January.

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