Bitcoin, the flagship cryptocurrency, outperformed Pantera Capital’s Digital Asset Fund last month, according to Pantera’s chief executive officer Dan Morehead, who in a letter to investors revealed the fund dropped 26 percent in May.
Bitcoin’s price, according to data from CryptoCompare, dropped around 15 percent last month. As Bloomberg reports, however, the fund surged nearly 50 percent in April outperforming the cryptocurrency.
Notably, bitcoin is down by about 50 percent this year, as it started at about $13,400 and is at press time trading at $6,600 after falling 1.38 percent in the last 24-hour period. Similarly, Pantera Capital’s hedge fund is down 51 percent year-to-date (YTD).
Morehead attributed the Digital Asset Fund’s recent decline to various altcoins who’ve been plummeting in value: Dash, OmiseGo, Waves, and BitShares. The firm didn’t offer further commentary on its performance.
In general cryptocurrency hedge funds are down 34 percent YTD. This means Pantera’s Digital Asset Fund is behind, although it did outperform most crypto funds in April, as most managed to gain 44.8 percent, while the Digital Asset Fund went up nearly 50 percent.
Dan Morehead’s letter to investors also criticized the attitude billionaire investor and Berkshire Hathaway CEO Warren Buffett has towards bitcoin and cryptocurrencies in general. It reads:
“Buffett avoided the dot coms, but he also missed Amazon, Facebook, Google Netflix, et al. If Berkshire buys Bitcoin as quickly as Apple — it will be in 2045. Buckle in.”
As CryptoGlobe covered, Buffett has in the past stated that buying bitcoin “is not investing.” At Berkshire Hathaway’s annual meeting, the CEO and his long-time collaborator Charlie Munger slammed bitcoin, comparing it to “turds” and “dementia.” During a joint interview with CNBC, along with JP Morgan CEO Jamie Dimon, he agreed investors should “just beware” of the cryptocurrency.
There are, however, reasons to remain bullish. A prominent market analyst, Bill Baruch, has recently argued that bitcoin may be forming a bottom, as its volatility is decreasing, which is “a sign that the selling has become exhausted.” Moreover, number of investment products have been gaining popularity in the cryptocurrency ecosystem.
San Francisco-based wallet and exchange service Coinbase has recently introduced its Coinbase Index Fund, which is accepting investments from accredited investors who’ll buy at least $250,000 worth of cryptoasset. Huobi, a popular cryptocurrency exchange, introduced a crypto-based exchange-traded fund (ETF) earlier this year.
