A cryptocurrency hedge fund has delivered a 24,000% yield over the past 4 years. The blockchain-focused hedge fund was one of the first to invest in the nascent digital coin market. Bitcoin's more than 13,000% return since its inception can't hold a candle to Pantera Capital.
The investing company's Pantera Bitcoin Fund has given a 24,004% yield for investors since its launch in 2013, according to a report by Nathaniel Popper in The New York Times.
“A significant part of the profits have come this season, thanks to the skyrocketing price of an individual bitcoin, which hit $US19,000 on Monday,” Popper reported Tuesday.
Hedge funds centered on cryptocurrencies have opened up in an eye opening rate this year. Founded in 2003, Pantera Capital was among the first to dive into the nascent market for electronic coins and also the underpinning blockchain technology.
An estimated $US2 billion was invested with specialist hedge funds focusing on cryptocurrencies in 2017, according to estimates from Morgan Stanley. Over 100 such funds exist, according to the bank. Some traditional hedge funds are turning into the crypto-space to find outsized returns for customers.
Typhon Capital Management, a Florida hedge fund that abounds in commodities, is starting a cryptocurrency fund at the start of 2018 which will put money into digital monies and first coin offerings.
Typhon's CEO, James Koutoulas, told Business Insider that he hopes to raise $US5 million to $US20 million for the new fund. “We now feel comfortable taking investors cash and placing it into this space,” Koutoulas said.
The cryptocurrency marketplace has soared to unbelievable heights in 2017, supplying a myriad of opportunities for investment firms. Bitcoin, for instance, has soared 1,700 percent this year to over $US18,000 a coin, according to data from market Insider. The entire marketplace for digital coins, of which there are now over 1,300, today stands above $US600 billion.