Sovereign Wealth Fund Hiring Blockchain Talent to Invest in Web3, Pantera Capital Raises $600M

Sovereign Wealth Fund Hiring Blockchain Talent to Invest in Web3, Pantera Capital Raises $600M for 4th Fund from Endowment

Funds continue to flow into the cryptocurrency market, with Pantera Capital being the latest to raise funding for its another crypto venture fund.

Pantera Capital has raised $600 million for its fourth venture fund, according to tech news site The Information, citing a person with direct knowledge of the matter.

The fund is expected to reach $1 billion when it closes in March and will invest in venture equity and crypto tokens that have launched and are in development.

About 75% of the capital for the new fund is coming from institutional sources such as endowments, much different from the firm’s $175 million it raised in 2018, which was mainly funded by individuals, including wealthy crypto investors.

Just two months back in September, Pantera raised $369 million for its then-new blockchain fund. As of August, the firm had $4.7 billion in assets under management.

Tiger Management alum Dan Morehead founded Pantera in 2003 as a global hedge fund which later shifted its focus to digital currencies and since then has backed more than 80 blockchain companies and 65 early-stage deals, including Coinbase, Circle, and Ripple.

The reservations of Pension funds, sovereign wealth funds, endowments, and other institutions are surely dissipating as they increasingly invest in crypto space this year. “Institutions are coming” is certainly not a meme anymore.

Banks are also increasing their efforts with Fidelity, UBS Asset Management, and State Street Global Advisors, confirming that they are looking into the potential of offering exposure to crypto, much like rivals BlackRock and Invesco.

Assets in European exchange-traded products (ETPs) and mutual funds with crypto exposure have topped €10.5 billion, according to Morningstar data.

Fidelity said it was “keeping close to the evolution of cryptocurrencies” as part of their wider exploration of the potential for digital assets, while Clemens Reuter, global head of ETFs at UBS, said, “(Cryptocurrency is) an area everyone needs to look at the moment.”

Citi is also hiring 100 people over the next several months to bolster its blockchain and digital assets divisions. The bank has also made Puneet Singhvi the head of digital assets for its Institutional Clients Group (ICG) as of Dec. 1.

“We are focused on assessing the needs of our clients in the digital asset space,” Citi has said in a statement.

Singapore sovereign wealth fund Temasek is another one hiring more blockchain talent to lead the efforts in exploring opportunities in AI and Blockchain technologies, “which the firm believes are long-term trends and will have a transformational impact across multiple industries and geographies.”

As per the job description on LinkedIn, Temasek is prioritizing projects on multi-currency payments, financial assets tokenization, and self-sovereign identity with a secondary focus on making select investments into web 3 venture funds and direct investments.

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Author: AnTy

82% Wealth Managers & Institutional Investors to Dramatically Increase Crypto Holdings within 3 Yrs

82% of Wealth Managers & Institutional Investors say They will Dramatically Increase their Crypto Holdings within 3 Years

Only 7% of this new survey respondents said they would reduce their crypto exposure, and a mere 1% said they would sell their entire holding.

Four out of ten institutional investors and wealth managers from the US, UK, France, Germany, and the UAE who have exposure to crypto-assets revealed that they will dramatically increase their holdings between now and 2023.

These findings were revealed by a new survey conducted by Nickel Digital Asset Management in early June. At the time, Bitcoin’s price was between $30k and $35k.

According to the firm, in most cases, institutional investors with holdings in cryptocurrencies have very low levels of exposure as they start testing the markets. Anatoly Crachilov, co-founder and CEO of Nickel Digital said,

“The number of institutional investors and corporates holding bitcoin and other cryptoassets is growing, and their confidence in the asset class is also increasing.”

The survey further reported that while 82% expect to increase their exposure, only 7% said they would reduce their crypto exposure, and a mere 1% said they would sell their entire holdings.

When it comes to what is driving this interest, 58% of respondents said the main reason for investing more in digital assets is the long-term capital growth prospects of crypto assets. This was followed by 38% saying they are getting more comfortable and confident in holding the asset class.

37% cited more leading fund managers and corporates investing, giving them more confidence to invest, with 34% saying an improving regulatory environment is also a key factor in wanting to raise their allocation.

Many of these professional investors who already hold crypto and are looking to increase their exposure are driven by several factors, including strong market performance during the Covid-19 crisis, said Crachilov.

Crachilov also pointed to more established investors and corporations endorsing the market, and the improving infrastructure and regulatory framework as other factors for the same, saying, “These trends will continue to expand.”

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Author: AnTy

Paul Tudor Jones Says 5% of Portfolio in BTC; A Store of Wealth the Same as Gold, Cash, & Commodities

Paul Tudor Jones Says 5% of Portfolio in Bitcoin; A Store of Wealth the Same as Gold, Cash, and Commodities

Paul Tudor Jones says “Go All-In” and “Buy Crypto”, Gold & Commodities if Fed Doesn’t Create A “Taper Tantrum” This Week

Legendary investor Paul Tudor Jones who called Bitcoin the “fastest horse” and was one of the first prominent investors to jump in on the cryptocurrency is now recommending 5% of a portfolio in the crypto asset.

To him, it is a way to “protect my wealth” as “over time it’s a great diversifier.”

“I look at bitcoin as a story of wealth. I look at crypto as a story of wealth. Others will argue this is a different ecosystem. It’s transactional in nature.”

Jones’ bullish comments on Bitcoin came during his interview on CNBC’s Squawk Box where he talked about inflation and how the Federal Reserve is handling monetary policy.

“You wonder why Bitcoin has a $2 trillion market cap and gold is at $1,865 an ounce. And the reason is that you have this dichotomy and policy that again questions the institution’s credibility.”

The hedge fund manager is paying close attention to this week’s Fed two-day policy meeting, which is scheduled to conclude Wednesday, in the light of recent higher consumer prices.

“If they treat these numbers… they were very material — if they treat them with nonchalance, I think it’s just a green light to bet heavily on every inflation trade.”

“If they say, ‘We’re on path, things are good,’ then I would just go all-in on the inflation trades. I’d probably buy commodities, buy crypto, buy gold.”

This is because transitory inflation doesn’t work for him, that is not how he sees the world.

In contrast, “taper tantrum” would mean correction but “that doesn’t necessarily mean it’s over,” added the founder and chief investment officer of Tudor Investment Corp.

A Great Portfolio Diversifier

According to Jones, the crypto asset is a great portfolio diversifier and he prefers 5% of his portfolio in it just like cash, gold, and commodities.

“I like bitcoin as a portfolio diversifier. Everybody asks me what should I do with my bitcoin. The only thing I know for certain is I want 5% in gold, 5% in Bitcoin, 5% in cash, and 5% in commodities. I don’t know what I will do with the other 80%. I want to wait and see what the Fed will do because what they do will have a big impact.”

When asked about his stance on cryptocurrency, the billionaire investor likened Bitcoin to math, saying:

“I like the idea of investing in something that is reliable, consistent, honest, and 100% certain.”

It is Bitcoin’s mathematical certainty that has appealed to him as it is in contrast to the unpredictability of the central bank’s policy which has the involvement of the human element.

“Bitcoin has appealed to me because it is a way for me to invest in certainty. Again, I look at the difference between the Fed of 2013 and the Fed of 2021. I look at the difference between Trump and Biden. Do I want to have faith in that same reliability and consistency of human nature and the linear nature of human nature which we know is anything but that?”

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Author: AnTy

More Than a Third of Millennial Millionaires Have at least 50% of their Wealth in Crypto

More Than a Third of Millennial Millionaires Have at least 50% of their Wealth in Crypto: Survey

Meanwhile, none of the baby boomer millionaires has more than 10% of their wealth in crypto, with 83% of American millionaires having none of their wealth in crypto.

Almost half of the millennial millionaires have at least 25% of their wealth in cryptocurrencies, according to the CNBC Millionaire Survey of 750 investors with at least $1 million in investable assets.

About 47% of these millennial millionaires surveyed have over 25% of their wealth in crypto assets, while more than one-third of them have at least half of their wealth in crypto.

“Seems understated,” commented Su Zhu, CEO of Three Arrows Capital.

“I actually don’t know any millennials who have a reasonable amount of wealth who don’t have at least 50% in crypto.”

The survey shows that millennials are the ones who prefer cryptocurrencies to traditional assets, and this helped them make a fortune by recognizing the trend early on. This is resulting in the “industry responding,” with more and more traditional providers offering access to crypto investing.

Older people are not as interested in crypto and have been unable to really understand digital currencies, refraining from investing in them.

“The younger investors jumped on it early when it was not as well known,” said George Walper, president of Spectrem Group, which conducted the online Millionaire Survey in April and May.

“The younger investors were more intellectually engaged with the idea even though it was new. Older investors and the boomers were largely saying, ‘Is this legit?’”

This can be seen in that 83% of American millionaires have none of their wealth in crypto, with only 1 in 10 having more than 10% of their wealth in crypto assets. And none of the baby boomer millionaires or older generations has more than 10% of their wealth in crypto.

The survey also revealed the generational divide among millionaires when it comes to non-fungible tokens (NFTs), which gained mainstream attention primarily this year which makes the older generations even further behind on the understanding.

While most millionaires say, they don’t know what an NFT is, more than a third believes it to be an “overhyped fad.” But a good two-thirds of millennial millionaires say NFTs “are the next big thing.”

Nearly half of millennial millionaires surveyed own NFTs, and 40% of those who don’t currently own one have “considered” it. Comparatively, almost all the baby boomer millionaires, 98%, say they don’t own any NFTs and aren’t considering either.

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Author: AnTy

A Net Inflow of $93 Million Pushes the Price of Bitcoin 1% Says Bank of America Report

“No good reason” to own Bitcoin except wealth preference, says bank’s report on cryptocurrency filled with bad takes.

There is no limit to bad takes on cryptocurrencies, especially from the mainstream financial service providers. And this week, the crypto market experienced a few.

To start with, Europe’s top markets regulator warned investors of “significant risks” involved in investing in crypto. Using its twice-yearly report on Wednesday, the European Securities and Markets Authority cautioned that “crypto-assets are highly risky and speculative” and that “consumers must be alert to the high risks of buying and/or holding these instruments, including the possibility of losing all their money.”

This week, Bank of America also released its research note, calling Bitcoin “exceptionally volatile” that makes it “impractical” as a store of wealth or payment mechanism.

As a matter of fact, according to the bank’s analysts, there’s “no good reason to own bitcoin unless you see prices going up.” So, according to them, if you prefer wealth, then do invest.

“The main portfolio argument for holding bitcoin is not diversification, stable returns, or inflation protection, but rather sheer price appreciation, a factor that depends on bitcoin demand outpacing supply,” the note said.

The report clung to bitcoin’s anonymity utilized by terrorists and its environmental impact, saying Bitcoin’s network emits about 60 million tons of CO2 per year, apparently the same as Greece.

The bank failed to make an effort to even understand the data, saying 95% of supply is controlled by the top 2.4% of addresses, which isn’t true, and compared it with the top 1% of Americans controlling 30.4% of the nation’s household wealth.

While Morgan Stanley, JPMorgan, BNY Mellon, Goldman Sachs, and others are working on their crypto strategy, Bank of America is busy with its report titled “Bitcoin’s Dirty Little Secrets.”

While talking about the leading cryptocurrency being correlated to risk assets and not at all tied to inflation, it says Bitcoin is “sensitive” to increased dollar demand.

The report further argues that “a net inflow into Bitcoin of $93 mn may result in a 1% price rise, while the analogue for gold is more than 20 times higher.”

Well, it has been just this year that, just over a decade old, Bitcoin became a trillion-dollar crypto asset, up more than 14x from March 2020 low and 2x from its last bull run ATH. As of writing, BTC/USD is trading just under $58,000, down 6.4% from its $62k peak from this past weekend.

As for the precious metal, the hundreds of years old bullion has a $10 trillion market whose spot price is $1,725 per ounce, 12% down from its $2,075 ATH in August, beating the August 2011 high of $1,920, a mere 8% outperformance.

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Author: AnTy

Singapore’s Sovereign Wealth Fund Leads Digital Asset Bank Anchorage’s $80M Series C Round

Singapore’s Sovereign Wealth Fund Leads Digital Asset Bank Anchorage’s $80M Series C Round

Anchorage has raised $80 million in a Series C round led by Singapore’s sovereign wealth fund GIC with participation from a16z, Blockchain Capital, Lux, and Indico.

“Largest sovereign wealth funds leading rounds in global crypto-asset custodians,” commented Su Zhu, chief executive officer, and chief investment officer at Three Arrows Capital.

Earlier this year, Anchorage received a national trust charter from the Office of the Comptroller of the Currency (OCC), making it the first federally chartered digital asset bank in history.

“Anchorage has gone through a brilliant metamorphosis — from a world-class custody solution to the standard-bearer for crypto banking,” said W. Bradford Stephens, Co-founder and Managing Partner of Blockchain Capital.

“In just a few short years, they’ve already been a powerful, catalytic force for institutional adoption, regulatory confidence, and overall maturation of the space.”

Now it is raising funds to expand its digital bank services with a focus on enabling institutions to participate in the digital asset space.

The firm laid down its five key goals for the year ahead, including offering at-launch support for new protocols. It will also continue to invest in broad asset support, just as with Filecoin, Oasis Protocol, and Celo.

Anchorage has already been seeing an “influx of interest” ever since it obtained the charter and helping organizations participate in digital assets through corporate treasuries and endowments.

As a bank, the focus is also to make crypto lending even more seamless and secure, and they further plan to scale its lending products and operations.

Besides partnering with neo banks, challenger banks, and traditional banks, the idea is to make institutional DeFi participation accessible.

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Author: AnTy

The Elephants are Moving In; Next Will be the Baby Boomer Wealth: Galaxy Digital CEO

The Elephants are Moving In; Next Will be the Baby Boomer Wealth: Galaxy Digital CEO

Morgan Stanley is now considering becoming a Bitcoiner.

The banking giant’s $150 billion investing arm, Counterpoint Global, is considering adding Bitcoin to its list of assets, reported Bloomberg, citing people with knowledge of the matter.

Counterpoint Global is led by Dennis Lynch and looks for unique companies whose market value can increase significantly, something Bitcoin more than fills the criteria.

The group oversees about 19 funds with prominent investments, including Amazon, Slack, Zoom, Shopify, and Moderna.

Moving ahead with its Bitcoin bet would require the approval of the regulators and the firm.

This morning Bitcoin and the rest of the crypto market is recovering from the sell-off that came not long after the price of Bitcoin nearly hit a new milestone of $50,000 following the BNY Mellon announcing support for the digital asset and Canada approving the first North American Bitcoin exchange-traded fund (ETF).

Already, Tesla has bought $1.5 billion worth of Bitcoin, and Mastercard will begin allowing cardholders to transact in selected cryptos on its network.

“The key for Bitcoin’s path higher is to win over more corporate endorsements,” said Edward Moya, senior market analyst at Oanda Corp.

“Bitcoin is no stranger to massive weekend moves and the next several days could easily see some wild swings.”

Even JP Morgan Chase, whose CEO Jamie Dimon called Bitcoin a “fraud,” is looking to get in with its Co-President Daniel Pinto saying that they will support Bitcoin if they find client demand, which isn’t there yet, but he’s certain that’ll change.

As such, according to Mike Novogratz, the chief executive officer of crypto investment firm Galaxy Digital, the market is yet to see more cash rush in, which is the Baby Boomer money — the “giant generational wealth transfer that’ll happen when they die off,” he said.

“I would tell you the big, big group that hasn’t participated is the baby boomer wealth channel in America,” which can’t participate through Morgan Stanley, JPMorgan, Goldman Sachs, Charles Schwab, UBS, and others yet.

But “that’s all going to change in the next two years. I can guarantee it’s going to change because I’m seeing it. We’re working with companies, it’s going to change,” said Novogratz in a recent episode of the Odd Lots podcast.

According to him, that’s why “the elephants,” the banking giants, have been lately moving in. They would first start with their wealth management division and then their trading business.

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Author: AnTy

BlackRock CEO: We’re Watching Bitcoin, It Could Be Another Store Of Wealth But Not Proven Yet

BlackRock CEO: We’re Watching Bitcoin, It Could Be Another Store Of Wealth But Not Proven Yet

The Bitcoin market needs to have a broadening so that large sums of money can be invested without moving the value for it to be successful, said Larry Fink, the founder of the world’s largest asset manager with $8.67 trillion AUM.

The price of Bitcoin might still be stuck up around $30,000, but institutions are still watching it and getting involved.

As we reported, the world’s largest asset manager who has $8.67 trillion in assets under management as of January 2021, recently filed with the SEC to add Bitcoin futures as an eligible investment to two of its funds.

Now, BlackRock CEO Larry Fink again talked about all the excitement around the leading cryptocurrency. “We’re watching it, we’re enjoying the conversation,” said the founder and Chairman of the asset manager giant.

While talking about working together on climate change, which he sees as an “investment risk” and sharing optimism around capital coming into China, Fink also addressed the Bitcoin market in an interview with Bloomberg, where he says, Bitcoin “is still very small.’

“It can move in a very large increment with small movements of money. So, it is not the market for the calm,” he said but added that he “understands the enthusiasm around it.”

Fink reiterated his views that this asset category is very small relative to other asset categories. The untested, highly volatile market is getting a lot of attention from the business media, which believes it’s gonna have a huge future, he said.

“People are fascinated about it,” Fink said. “It could be another store of wealth. But right now, it’s still untested. It has huge volatility.”

Fink is playing it neutral now as he says that the leading digital currency “has not proven yet on the long term viability of it.”

“For it to be truly successful, it is gonna have to have a broadening of a market, and you can invest large sums of money without moving the value,” he said. “So we are watching it, we’re enjoying the conversation” and fascinated by how many people have enjoyed the conversation.

The CEO also said that some form of a digitized currency would be playing a bigger role in the future, but it’s to be seen if it would be Bitcoin or some other currency.

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Author: AnTy

Jim Cramer Advises a 5% Investment in BTC to Protect Your Wealth from its Kryptonite, ‘Inflation’

Jim Cramer Advises a 5% Investment in BTC to Protect Your Wealth from its Kryptonite, ‘Inflation’

Mad Money host Jim Cramer recommends making a 5% investment in Bitcoin.

Jim Cramer made this recommendation during his program on Thursday night to the unknown Maryland-based winner of the $731 million Powerball jackpot.

“You know what, if you won the lottery – Yes, I’m gonna say it: 5% in Bitcoin,” said Cramer, who himself owns some BTC. However, he further advised not to buy all the Bitcoin at once or buy it on the weekend.

“Crypto could be incredibly volatile,” he said on the day the price of Bitcoin dropped just under $29,000, marking an approximately 30% pullback from an all-time high of $42,000 in early January.

The stock picking personally described the leading cryptocurrency as an “important new store of value.” Cramer said,

“If you’re already rich, you have to worry about inflation the same way Superman worries about Kryptonite. Because it’s the only thing that can really wipe you out. And given the way we’re spending like drunken sailors in this country, it may be an issue.”

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Author: AnTy

Argentina Passes the ‘Solidarity’ Law to Confiscate Wealth

Argentina has approved the wealth tax that will impose a tariff on people with large fortunes in an attempt to boost its revenue. The third-largest economy in Latin America struggling with high inflation and an increase in poverty is heading into its third year of recession.

The “Social Solidarity and Productive Reactivation” Bill was already passed by the lower house and late on Friday, Senators also gave its nod with 42 votes in favor and 26 against.

“This law will allow Argentina to move forward because the situation is really serious,” the Committee on Budget and Finance president Carlos Caserio said. “The emergency declaration is the way to get out of this problem quickly.”

It involves a one-time tax of at least 2% on individuals with assets of more than 200 million pesos ($2.45 million), through which the government aims to collect about $3.7 billion.

“We must find points of connection between those who have the most to contribute and those who are in need,” said ruling party Senator Anabel Fernandez Sagasti on Twitter.

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“When QE is no more sufficient, seize it directly from the people. All in the name of Covid,” wrote one Bitcoiner on Twitter.

The proceeds from the tax will be used for medical supplies (20%), SMEs (20%), “social developments” (15%), student scholarships (20%), and natural gas development programs (25%).

“Bitcoin is the only exit door from this nonsense,” added the crypto enthusiast.

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Author: AnTy