As Crypto VC Funding Hits Record High, Pantera Launched $600M Fund

Pantera Capital announced a new $600 million blockchain fund to invest in early stage tokens, equities and currencies as venture capital allocated to digital assets hits an all-time high.

article-image

Dan Morehead, founder, CEO and Co-CIO; Source: Pantera

share

key takeaways

  • Pantera Capital announced a new $600 million blockchain fund that has already raised $375 million
  • The fund’s minimum investment is $1 million, limiting it to institutional investors

Venture capital money is pouring into the digital asset space at a record pace this year, with $3 billion allocated to the space in the first quarter of 2021 alone, according to data from Pitchbook

Cryptocurrency investment manager Pantera Capital is launching a new blockchain fund and it is already more than halfway to its goal of $600 million. 

Pantera CEO Dan Morehead announced the fund, which will have closings every fiscal quarter, on a call with investors Wednesday. The first closing for the fund was completed in June with $375 million raised. 

The fund will invest in three categories; venture equity, early stage tokens and traded liquidity tokens, such as bitcoin. The largest allocation will be toward venture equity. It is designed to protect against short-term volatility that can be nerve wracking for investors. 

“The new fund is able to capture the often-large swings in value between equity and tokens,” Dan Morehead, CEO and co-chief investment officer of Pantera, wrote in a letter to investors. “Tokens reset quickly. In May, tokens dropped 55% in the span of a few weeks. On the other end of the spectrum, venture equity is very slow moving.” 

The venture capital structure is a 10-year commitment, which helps investors to overlook day-to-day fluctuations in the market, Pantera said. 

Pantera, which manages $5 billion in assets, began investing in the digital asset space in 2013, when convincing institutional investors to enter the digital asset space was a challenge.  

“Our first institutional, or outside LP, venture fund was in 2014, and it was a slog,” said Paul Veradittakit, partner at Pantera. “It was so tough to fundraise, we raised about $25 million for that one, mostly from high net worth individuals and family offices, and it was just venture.” 

Things have changed since then, and it’s mostly due to institutional investor interest, Verdittakit said, which really picked up earlier this year. 

“Because of what was happening last year with DeFi, investors really opened up to the possibility of getting exposure to tokens,” he said. “A lot of investors think that it makes sense to have exposure to everything, and they want to defer to a fund manager versus trying to decide which strategy to deploy and when.” 

Regulation, Verdittakit said, is a common concern for investors, given the current lack of clarity in the space, but further oversight is an indication that the industry is growing.

“I think there’s been a lot of regulatory progress, both in terms of custody and in terms of licensing, there’s obviously some potential concerns around DeFi, but I think it probably doesn’t get regulated, up to a certain extent, unless the space gets large enough,” he said. “If space gets large enough, then the project will have matured and it’s a good problem to have. We’ll see what happens but we’re obviously going to do whatever we can as a firm to push forward regulations.” 

Are you a UK or EU reader that cant get enough investor-focused content on digital assets?Join us in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket. Buy it now.

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (1).jpg

Research

Jupiter has emerged as the undisputed liquidity backbone of Solana, commanding over 90% of spot DEX aggregation and 80% of perp trading volume. But behind the numbers lies a far more ambitious play: a cross-chain, vertically integrated super-app spanning swaps, synthetics, NFTs, memecoins, and launchpads. This report explores Jupiter’s rapid rise, the monetization upgrades reshaping its revenue profile, and the risks that could unwind its dominance, from token dilution to competition. With annualized revenues nearing $300M, the upside is undeniable, if it can navigate the turbulence.

article-image

In recent weeks, Helium has hit new all-time highs while passing major protocol milestones

article-image

Financial advisers in a January survey said equity ETFs were their top choice for gaining crypto exposure in 2025

article-image

“Why put a target out there that’s really speculative, not knowing exactly where this environment is going to go?” CarMax CEO Bill Nash said

article-image

While the head of Base may support legal sex work, Coinbase policies prohibit said workers from using its exchange.

article-image

EVM bottlenecks fundamentally hold back Ethereum’s scalability

article-image

In 2011, WikiLeaks faced a financial blockade imposed by the US government. It was Bitcoin’s first major test.