A legendary crypto hedge fund is riding out this year’s macro madness by moving the majority of its assets into bitcoin.
“While we remain long-term bullish on many of these projects, during the crash we have taken on a larger bitcoin allocation to reduce downside risk,” said Dan Morehead, the founder of Pantera Capital, in a recent investor letter.
Crypto investors are facing uncharted territory. Since bitcoin’s inception in 2009, it’s been a Goldilocks era where growth and inflation have neither been too hot, nor too cold.
Now it’s a different story. Inflation is running hot, interest rates are rising to combat the surge and a
recession
might even be on the horizon as economic growth starts to slow.
To combat this tough economic environment, one of the oldest and most experienced players in the crypto ecosystem Pantera Capital is hunkering down with mostly bitcoin for protection.
Dan Morehead first formed Pantera Capital as a macro hedge fund in 2003 after having spent time as an asset-backed securities trader at Goldman Sachs and as the head of macro trading and CFO at Julian Robertson’s Tiger Management.
In 2013 it launched its first bitcoin fund, which has returned 44,000% since inception, and now it manages $5.1 billion in assets with a specific focus on crypto.
Morehead’s recent decision to reposition is driven by…
