The results of the venture fund Venture Fund II, owned by California-based investment company Pantera Capital, showed that even in a falling market for a long time, you can get a significant profit.
According to the report, for the period from the first to the third quarter of this year, the fund's assets increased by 60%. At the same time, over the same period, the price of Bitcoin decreased by 53%, and the privately-traded index fund Bitwise Index 10, which tracks the market capitalization of the ten largest cryptocurrencies, lost 59%.
Representatives of the company stressed that increased volatility in liquid markets allows investors to get a significant profit.
“If you look at the entire existence of Venture Fund II, then, of course, Bitcoin grew 11.3 times, and the fund's profit was 330%. Both indicators are very good, but the venture fund did it without ups and without gray hair on the heads of investors. Not to mention the nerves lost in independent trading”, said representatives of Pantera Capital.
But regarding the investment in ICO, the company situation is worse. It is all about the position of the regulator, which began to close the ICO, the tokens of which fall under the classification of securities.
“About 25% of our fund's capital is invested in projects with tokens that were sold without obtaining a license from the regulator. If some of these projects are recognized as falling under the law on securities, the regulator persecution may affect them” , the fund representatives said.
Pantera Capital also reported that it has already collected two-thirds of the $ 175 million required to launch the third venture capital fund. They plan to collect the required balance will by the end of the first quarter of next year.
Recall that in late November, Galaxy Digital Holdings LP - a cryptocurrency bank founded by cryptocurrency investor Mike Novogratz (Mike Novogratz) - announced losses totaling $ 41 million for the third quarter of 2018, resulting in total company losses for the year totaled about $ 136 million