According to CNBC, Morehead’s reasoning was that cryptocurrencies are revolutionary and here to stay. Using now-defunct Pets.com to explain his point, he said:
“If you had a portfolio of IPOs — one was Pets.com and one was Amazon.com — it doesn’t matter what the rest were. You made a great return.”
Morehead’s words came in a letter sent to investors. It noted that in case bitcoin flops like Pets.com – which filed for bankruptcy in 2000 – did, then they will still “probably do very well.” Using Pantera’s ICO Fund as an example, he pointed out that it would still be positive for them after the Fund, which is made up of 25 ICOs, went down to “single-digit number of blockchains,” and saw 90 percent of the ICOs go to zero.
Per the letter, Pantera´s ICO Fund lost about 25 percent of its value last year, but is still up more than 200 percent since it was created. The hedge fund’s Long-Term ICO Fund is up 5.9 percent, and its Digital Asset Fund is down 16.8 percent. Pantera’s Bitcoin Fund has fallen 26.9 percent this year, but since its inception is up 16,000 percent.
According to the hedge fund’s CEO, bitcoin is the “miracle whip of finance.” In his letter he advised investors to have 1 or 2 percent of their portfolio invested in blockchain technology. He reasoned: […]