Institutional Investors Dominate Pantera Capital’s $600M Funding

UTC by Oluwapelumi Adejumo · 3 min read
Institutional Investors Dominate Pantera Capital’s $600M Funding
Photo: TechCrunch / Flickr

Dan Morehead-led Pantera Capital has raised around $600 million from institutional investors.

One of the first digital asset management companies in the United States, Pantera Capital has raised around $600 million in its fourth venture round with 75% of those funds coming from institutional sources like pension funds, sovereign wealth funds and endowments. This was revealed by a report from The Information.

In previous times, the majority of institutional investors in the crypto firm might have had some level of reservations about investing in a crypto product, however, the current growth of the industry plus the increased adoption of these assets has made them a viable investment option.

An interesting observation from the current funding round is that in its 2018 funding, Pantera Capital saw less support from institutional investors. Then, the bulk of its $175 million capital was raised from notable crypto investors who gave their blessings to the company.

With the round yet to close, sources close to the funding believes it could get to as high as $1 billion by March next year. This means that we still could see other interested institutional investors backing the Dan Morehead-founded company.

According to available information, the firm will be using its new funds to invest in venture equity, crypto assets that have been launched and those that are still in development.

Institutional Interest in Crypto

It is no longer news that the interest of institutional investors in crypto is beginning to rise again. CoinShares, through its weekly report, has shown that the institutional investors have poured close to $10 billion into the crypto industry this year alone. This figure already surpasses those of the previous years by a mile.

Per the CoinShares report, institutional investors have been investing majorly in crypto assets like Bitcoin, Ethereum and other notable tokens like Cardano and Solana.

Apart from this, crypto-related firms like Pantera and others have also seen a rise in fundings from interested investors who are looking to tap into the Web 3.0 development and crypto.

Facebook was recently renamed to Meta in its bid to immerse its services and development into the new “mode of internet.” Other social media sites like Twitter, Discord and Reddit have also at different times have hints that they could be looking to integrate crypto services into their platforms.

You’ll recall that the United States Securities and Exchange Commission recently approved a number of Bitcoin ETFs – another indication that the space is maturing and growing. This approval led to the market cap of the entire industry reaching the $3 trillion milestone.

Business News, Cryptocurrency news, News
Oluwapelumi Adejumo

Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.

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