Bitcoin’s more than 13,000% return since its inception can’t hold a candle to Pantera Capital.
The investing firm’s Pantera Bitcoin Fund has delivered a 24,004% return for investors since its launch in 2013, according to a report by Nathaniel Popper at The New York Times.
“A significant portion of the gains have come this year, thanks to the skyrocketing price of an individual bitcoin, which hit $19,000 on Monday,” Popper reported Tuesday.
Hedge funds focused on cryptocurrencies have opened up at an eye-popping rate this year. Founded in 2003, Pantera Capital was among the first to dive into the nascent market for digital coins and the underpinning blockchain technology.
An estimated $2 billion has been invested with specialist hedge funds focusing on cryptocurrencies in 2017, according to estimates from Morgan Stanley. Over 100 such funds exist, according to the bank.
Even some traditional hedge funds are turning to the crypto-space to find outsized returns for clients.
Typhon Capital Management, a Florida hedge fund that specializes in commodities, is launching a cryptocurrency fund at the beginning of 2018 that will invest in digital currencies and initial coin offerings.
Typhon’s CEO, James Koutoulas, told Business Insider he expects to raise $5 million to $20 million for the new fund.