Struggling cryptohedge fund says it will still do well even if bitcoin becomes 'Pets.com'

Regardless of bitcoin's value slip this year, one support stock investments chief holding the digital currency says regardless of whether it tumbles the way Pets.com did in the website period, his financial specialists will in any case profit. 

"On the off chance that you had an arrangement of IPOs — one was Pets.com and one was Amazon.com — it doesn't make a difference what the rest were. You made an awesome return," Dan Morehead, CEO and co-boss venture officer of Pantera Capital, wrote in a letter to customers Friday checked on by CNBC. 

His letter to financial specialists said that regardless of whether bitcoin were the notorious Pets.com, which petitioned for chapter 11 of every 2000, "you will most likely do." The advanced money is down in excess of 38 percent this year, and was exchanging close $8,519 starting at 12:08 p.m. ET Friday. 

He featured Pantera's ICO Fund for instance, which is comprised of 25 introductory coin offerings. 

"That is even after we're down to a solitary digit number of blockchains and 90 percent of the ICOs have gone to zero," Morehead said. 

Pantera's ICO Fund lost a fourth of its esteem this year yet is up in excess of 200 percent since its initiation, as indicated by the financial specialist letter. Pantera's Long-Term ICO Fund is up 5.9 percent. Its Digital Asset Fund is down 16.8 percent, and the Bitcoin Fund is down 26.9 percent this year yet life-to-date is up in excess of 16,000 percent, as indicated by the letter. 

Multifaceted investments no matter how you look at it recorded their first negative month since October 2016, down 0.08 percent in February, as indicated by information from Prequin. 

Morehead indicated Jeff Bezos' methodology with Amazon. The organization was a larger part speculator behind Pets.com, he stated, and regardless of that disappointment made "a crazy measure of riches." 

"The lion's share speculator in Pets.com saw how troublesome the web conventions that went before bitcoin would be," Morehead said. 

The key for Bezos was putting resources into in excess of one website organization, and ensuring he had presentation to a definitive victors, Morehead said. Offers of Amazon are up in excess of 4,000 percent from the time Pets.com went bankrupt. Bezos is worth more than $130 billion, as per Forbes' most recent figures. 

Morehead called bitcoin the "supernatural occurrence whip of fund" and proposed financial specialists have 1 or 2 percent of their portfolio put resources into blockchain. 

"I am not sure that blockchain will return 20,000% once more. In any case, the chances are sufficiently high that when you aggregate the probabilistic weighted results the normal esteem is the most hilter kilter exchange I've ever observed," Morehead said. 

He was additionally bullish on the ICO blast, which has gotten the consideration of U.S. controllers. 

The Securities and Exchange Commission has concentrated on starting coin offerings, or computerized coins discharged through pledge drives known as token deals. The organization issued "scores of subpoenas," including demands for data about offers of new computerized coins, as indicated by Wall Street Journal reports. 

"The ICO thing will be particularly similar to the 1990's IPO blast – simply substantially greater," Morehead said. 

— CNBC's Leslie Picker added to this report.