Check this out. I just came across this after my post. The flood gate is about to open.
Pantera Bitcoin Fund SEC Filing Reveals $96 Million InvestmentJune 14, 2014
https://www.rapidcx.com/blog/pantera-bitcoin-fund-sec-filing-reveals-96-million-investmentIn a recent Form D notice filed with the U.S. Securities and Exchange Commission (SEC), the San Francisco based hedge fund Pantera Capital disclosed that their Bitcoin fund has raised more than $96 million USD from 45 investors [1]. The investment firm focuses exclusively on digital currencies and related companies in the sector. Pantera Capital shareholders include influential venture capital firms such as Benchmark, Fortress, and Ribbit Capital.
Background
In the United States, private companies often take advantage of a Form D filing because it allows them to raise investor funds while bypassing the traditional SEC approval process. Traditional SEC filings are a notoriously drawn-out process which firms tend to avoid unless necessary. To put it in perspective, the Winklevoss Bitcoin Trust has been pending since its initial filing back in July of 2013 [2]. While this approach will prevent the shares from being publicly traded, it does imply that the fund is open-ended and has plans to continue growing.
This news confirms the Bitcoin community's growing suspicion that institutional investors are starting to accept the validity of the digital currency. According to the document, the first sale occurred October 2, 2013. This suggests that the $96 million USD worth of Bitcoin was purchased sometime within the last 8 months and may not entirely be responsible for Bitcoin’s recent surge in price. This is not Pantera Capital’s first investment surrounding Bitcoin. In 2013, the firm invested $10 million USD into Bitstamp -- a popular Bitcoin exchange [3].
What does this mean for alt-coins?
According to the Pantera Capital website, the firm also has their eyes on other digital currencies outside of Bitcoin [4]. While this isn’t the first case of venture capital funds taking notice of alt-coins, it certainly is an interesting distinction to note because alt-coins have largely been neglected by traditional investors (and often companies already in the Bitcoin space). With the spectacular rise of coins like Darkcoin, perhaps the alt-coin economy has caught the attention of large Bitcoin speculators.
Fun Fact: Alt-coins make up 7.5% of the current $9.1 billion cryptocurrency market.
Let us know what you think. Are mainstream investors finally beginning to take notice of the lucrative $680 million USD alt-coin market?
Note: It should be noted that the term "investors" does not necessarily imply individuals. According to the SECs definition of "accredited investors", the funds could have been raised from banks, insurance companies, investment companies, employee benefit plans, etc.
1.
http://www.sec.gov/Archives/edgar/data/1598389/000090266414002722/xslFormDX01/primary_doc.xml2.
https://www.rapidcx.com/blog/winklevoss-bitcoin-fund-to-be-traded-on-nasdaq3.
http://www.bloomberg.com/news/2014-03-17/fortress-linked-pantera-said-to-invest-in-top-bitcoin-exchange.html4.
https://panteracapital.com/aboutWritten by Michael Toth