Pantera Capital launches $1.25 billion Blockchain Fund

US crypto asset manager Pantera Capital is looking to raise $1.25 billion for a second blockchain fund.

Not so long ago, the company’s CEO – Dan Morehead – claimed that the digital asset market had bottomed in June and a rally was looming.

‘Very optimistic’ for the future

Pantera Capital introduced its first cryptocurrency fund in August 2020, when it raised $165 million.

In a recent interview, CEO Dan Morehead revealed that Pantera Capital intends to launch a second blockchain fund that will be significantly larger than the previous fund – $1.25 billion, to be completed by May next year.

Morehead said his company believes in the future development of the cryptocurrency industry, which is why it is focusing on such investments:

“We want to provide liquidity to people who give up because we are still very optimistic for the next 10 or 20 years.”

However, the current situation of the sector is not optimistic. Today, the global cryptocurrency market cap has fallen below $1 trillion, while bitcoin is trading at around $19,000 (down 70% from its November 2021 high).

According to Morehead, the underperformance of most cryptocurrencies is due to their high correlation with other risk assets. However, he expects to see the end of this trend soon, which will cause the price to expand:

“Unfortunately, the pricing of cryptocurrency has become associated with risk assets, which I honestly don’t think should be true. I hope that cryptocurrency will soon be decoupled from the macro markets.”

Morehead Crypto Predictions

At the beginning of the month, the CEO of Pantera Capital predicted that the ongoing crypto winter would soon begin to change. Compare it to other market declines in the past, which were later followed by ups:

“We’ve been through three major bear market cycles. I think we hit the June lows, and are heading into the next bull market. It might be tough and it might take some time, but I think we’re on our way to the next stage of the rally.”

A few weeks later, Morehead envisioned that billions of people would use blockchain technology in their activities in the next four to five years. He argued that this assumption could be another reason for future price hikes for many cryptocurrencies.

Post Pantera Capital to launch a $1.25 billion Blockchain fund made its debut on CryptoPotato.

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