Bitcoin Price Overtook Crypto Hedge Fund Pantera Capital In May
In some cases, it does not make sense to differentiate and cryptocurrency hedge fund Pantera Capital whose fund was outperformed by bitcoin price in May knows much about it.
According to reports, the company’s Digital Asset Fund during May was outperformed by bitcoin price as the cryptocurrency markets remained to drop further from the all-time highs they recorded in late December and early January.
Pantera CEO Dan Morehead recognizes the low performance in a monthly investment letter shared amongst clients on Tuesday, stating that the fund has declined 26 percent for the month and is presently down 51 percent in 2018.
For now, bitcoin price reported a 15 percent drop in May and is also down by an estimated 51 percent for the year. This may not be a pleasing return on investment, yet it comes without Pantera’s management fee.
Pantera’s week performance in May signified a significant setback from April when it rallied 46.2 percent to surpass the dominant cryptocurrency, including the crypto market writ-large. Morehead credited the recent decline to its shares in Dash, Waves, Bitshares, and OmiseGo, assets which performed poorly during the period.
The expansion is a usual investment tool, yet its wisdom in relation to the cryptocurrency markets has since been argued. Individual asset prices continue to be highly correlated, and even as now the leading number of fiat investments flow into the cryptocurrency ecosystem through bitcoin.
Besides, so-called “bitcoin maximalists” usually refer to market cap charts from previous years as evidence that expansion has been a bad strategy. To wit, only two of the 10 most valuable cryptocurrencies in June 2013-bitcoin and litecoin- are still on the top 100 position.
That’s is a very serious situation, especially when the growth of the ecosystem at the time, but looking back at market cap charts from previous years indicates a series of now-forgotten projects that investors at some point hoped could take bitcoin’s crypto-crown.