According to Pantera Capital analyst and partner Franklin Bi, the decision to approve spot Bitcoin ETFs this year in the United States is a significant endorsement for the cryptocurrency industry, as the company This crypto venture capital is raising a new fund worth up to $1.25 billion.
Although Franklin Bi declined to comment specifically on Pantera's new fund, he said in an interview that the time is right for venture firms in general to raise new Capital and position themselves to support emerging startups.
Bi said that the approval of a spot Bitcoin ETF “significantly validates” the cryptocurrency industry. “The approval really showed everyone that regulations are still moving in a positive direction for digital assets,” he said. That kind of validation has really reinforced the confidence of many institutional investors that this is a long-term technology trend and development cycle that they should be exposed to.”
In addition to Pantera Capital, Paradigm is reportedly in talks to raise between $750 million and $850 million for a new fund. Galaxy Digital, Hack VC and Hivemind Capital are said to be in the process of raising $100 million, $100 million and $50 million for their respective new funds.
Alliance recently raised $20 million from Brevan Howard Digital and Galaxy Digital for its third fund, which is aiming to raise another $80 million in July. Venture capital firm Founders Fund's Peter Thiel also recently bought shares in Alliance. Meanwhile, crypto venture firm 1kx recently raised $75 million to support early-stage startups.
According to Bi, within the cryptocurrency sector, the gaming and DeFi industries offer significant investment opportunities. He also noted the emergence of real-world asset Tokenize (RWA) as a continuation of DeFi, bringing traditional financial assets into cryptocurrency.
Regarding startup valuations, Bi describes them as “healthy” overall but notes that it is a bit overheated in the early stages due to excess Capital pursuing selective investments in pre-seed Capital rounds (Pre-Seed) and seeds (Seed). Bi finds valuations at the Series A stage attractive, especially for teams that demonstrate market success and long-term growth potential. Beyond Series A, valuations become “extremely attractive” because there is demand for Capital at that stage, but supply is “pretty stable to the point of decreasing,” Bi said.
Pantera Capital remains focused on the fundamental growth of the cryptocurrency industry. Bi noted blockchain technology is penetrating various global markets, including financial markets, supply chain and consumer applications, in line with the joint venture company's long-term strategy.
Bi concluded:
“So I think it's a great time to really focus on those aspects of the industry and double down on the long term, which is what we're doing.”
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