That’s down from $6.4 billion Pantera was managing at the end of November. In his Dec. 23 interview with Bloomberg, Morehead predicted that expectations for more aggressive Federal Reserve tightening would continue to drag on cryptocurrency prices.
The Bloomberg Galaxy Crypto Index, which tracks the value of a variety of cryptocurrencies, has dropped almost 20% since the start of the year, while the yield on 10-year Treasuries has climbed about 25 basis points.
“Blockchain is now being driven by all the excessive money-printing going on in the world,” said Morehead, whose firm recently opened an outpost in Puerto Rico, which has become a haven for crypto investors.
In a letter to investors last month, Morehead called the U.S. government and mortgage bond market “the biggest Ponzi scheme in history.”
As for whether the technology has fulfilled Briger’s vision for disrupting the banking system, he said the process has begun, but that there’s still a long way to go.
“It’s like email in the early 1990s, when it was very clunky,” Briger said. “No one could envision at that point what instant communication would mean for commerce and the world.”
Morehead said he’s no longer interested in betting on the traditional assets that defined his early career and that he hasn’t invested in anything other than crypto since 2013.
“Crypto is so much more compelling than any other trade out there.”
—With assistance from Sonali Basak.
This article was provided by Bloomberg News.