Skip to main content

See also:

Bitcoin hedge fund and other developments

Bitcoin
Bitcoin
Bitcoin

In 2013, amid a rise in the value of Bitcoins, an unregulated digital medium of exchange referred to as the first 'cryptocurrency', more rumors flew abound concerning, not only bitcoins actual legitimacy and stability as a currency, but also the formation of a Bitcoin hedge fund.

Recently, Perseus and Atlas formed a digital currency global trading platform that includes not only Bitcoin, but also digital currencies whitecoin and dogecoin. The platform being specifically geared towards high frequency trading and large investment firms.

Atlas co-founder Shawn Sloves claimed,

We’re giving [institutions] the ability to build private markets that manage their wallets for bitcoin and they can have their own exchange where they have buyers and sellers come in.

For a bastard currency without a home country this can only provide the sought after stability Bitcoin needs to move towards a possible mainstream acceptance, especially considering it's already oft-chaotic history, but that's not all.

Pantera Capital, one of the investment groups at the center of last years storm of controversy concerning Bitcoin, has formed Pantera Bitcoin Partners, a hedge fund for passive investing into Bitcoin.

Major shareholder in the fund Fortress Investments, who also expressed interest in starting a Bitcoin fund last year, is going to be acquiring Bitcoins and making all their investments through Pantera's new fund.

For Bitcoin to become stored value, it needs to be trusted by hundreds of millions of people, not just hundreds of thousands of people. It's still very high risk, but this is a step toward that goal.

commented Ribbit Capital founder Meyer "Micky" Malka.

Pantera Bitcoin Partners filed as a hedge fund with $147,000,000 in capital, and has them located and operating under the laws of the Cayman Islands, which has been considered a tax haven for the über-rich. The minimum investment amount in this fund is $250,000, meaning this only truly benefits those already in a cash position upwards of a quarter million.

The Winklevoss twins, the Olympic rowers and internet entrepreneurs highlighted as main players in the true-to-life film 'the Social Network', are also amongst a serious band of bitcoin speculators and investment heavy weights who are now rallying behind the radical currency who's path towards stability has been in doubt numerous times amongst the financial hierarchy.

Dan Primack of CNN states in a recent article;

"In addition to Fortress, Pantera has received investments from venture capital firms Benchmark and Ribbit Captial. Those three firms also recently partnered to invest $20 million into Bitcoin "vault" company Xapo, which happens to hold Pantera Bitcoin Fund's assets (Pantera also made a small co-investment on that deal, which had not been previously disclosed),"

While Dan Morehead, Pantera's CEO said,

"About a year ago I put all of my professional intentions into Bitcoin, and came across these three firms and saw that we had similar visions. Now they are shareholders."

Regardless of what took place a year ago, as of right now the future of Bitcoin looks more certain than ever.