As the crypto market bleeds red, Pantera's venture fund is up 60%

Quick Take

  • Pantera’s venture investments are humming along despite the bear market
  • Its VFII is up 60%, whereas its VFIII is close to hitting its $175 million fundraise target

Pantera Capital, the California-based cryptocurrency investing firm, has not completely succumbed to the grip of the cryptocurrency bear market, according to an investor letter out December 13. 

Pantera's venture fund, dubbed VFII, is up nearly 60% from Q1 to Q3, according to the note. Over the same period, bitcoin is down 53%. Passive fund Bitwise Index 10, which tracks ten cryptos, is down 59% over the same period. 

The firm said volatility in liquid markets has made venture investments an oasis for investors in crypto. 

"Zooming out to Venture Fund II’s full lifespan—sure BTC is up 11.3x compared to VFII’s 3.3x gross TVPI, both of which are strong returns," the letter said. "But venture did it without the roller coaster ride and additional grey hairs… not to mention the decreased likelihood of errant trades based on short-term emotions (we discuss human nature being pro-cyclical in our April letter)."

It's a different story, however, for ICO investments.