Pantera Capital, one of the first digital asset management firms in the United States, has received $600 million in its fourth venture round, with institutional investors such as pension funds, sovereign wealth funds, and endowments accounting for 75% of the money.
The bulk of investment firms in the crypto sector may have had concerns about investing in a crypto asset in the past, but the industry’s present expansion and greater usage of these assets have made them a legitimate investment alternative.
Pantera Capital had less backing from institutional investors in its 2018 investment round, which is an interesting discovery. The company then raised the majority of its $175 million financing from well-known crypto investors who endorsed it.
Despite the fact that the round has yet to finish, insiders close to the funding predict it will reach $1 billion by March of next year. This suggests that more institutional investors may still be interested in funding the Dan Morehead-founded firm.
According to publicly available information, the firm plans to spend its fresh cash on venture capital, as well as launching and developing crypto assets. Pantera intends to position itself to support and grow its platform in the coming year as competition is expected to intensify.
Interest in Crypto by Institutions
The fact that institutional investors are rekindling their interest in cryptocurrency is no longer news. Institutional investors have invested nearly $10 billion into the crypto business this year alone, according to a report. This number is already significantly higher than in prior years.
Institutional investors have been heavily investing in crypto assets such as Bitcoin, Ethereum, and other noteworthy tokens such as Cardano and Solana, and they seem to be on the lookout for more reliable investments.
Aside from that, crypto-related companies such as Pantera and others have witnessed an increase in funding from interested investors hoping to get into Web 3.0 development and crypto.
Mark Zuckerberg’s Facebook recently announced that it had changed its name to Meta in a bid to become a leading player in the growing Metaverse world. Mark is not the only tech innovator to have swung into action and positioned themselves as key players in the growing blockchain sector.
Other social media networks, such as Twitter, Discord, and Reddit, have hinted at the possibility of integrating crypto services into their platforms at various points.
Pantera was launched in 2003 as a worldwide hedge fund by Tiger Management veteran Dan Morehead before focusing on digital currencies a decade later. In a portfolio that includes payments startup Circle, crypto exchange Coinbase, and Ripple, Pantera has funded more than 80 blockchain companies and 65 early-stage token deals.
Pantera raised $369 million for its then-new blockchain fund in September. As of August, the firm had $4.7 billion in assets under management.