Crypto Crashes Rattle Venture Capitalists
Watch on YouTube ↗  |  February 11, 2026 at 13:22 UTC  |  4:35  |  Bloomberg Markets
Speakers
Katrina Paglia — Chief Legal Officer, Pantera Capital

Summary

  • Crypto Market Context (Feb 2026): The market is in a "Crypto Winter," down >50% from October 2025 highs. However, volatility is significantly lower than previous cycles (2013, 2017, 2021) due to institutional maturity.
  • Regulatory Shift: Stablecoin legislation passed in 2025 has integrated crypto into the US financial plumbing; the US Treasury reportedly holds a stablecoin portion, validating the asset class.
  • Venture Capital Pivot: Pantera is shifting strategy from early-stage "spray and pray" to "flight to safety." They are writing larger checks for fewer, more mature projects.
  • The Death of the Proxy: The "Digital Asset Treasury" model (buying stocks just because they hold Bitcoin) is fading because investors now have direct access (ETFs/Spot) without the corporate wrapper risk.
Trade Ideas
Ticker Direction Speaker Thesis Time
LONG Katrina Paglia
Chief Legal Officer, Pantera Capital
Paglia notes that stablecoin legislation passed last year (2025) has created "interesting use cases for real world application... from a payment rails perspective." She explicitly mentions the US Reserve now holds a stablecoin portion. Regulatory clarity and government adoption of stablecoins transform them from speculative instruments to recognized payment rails. This directly benefits the primary infrastructure providers (Coinbase) and fintechs integrating these rails (PayPal). Long the regulated infrastructure handling the stablecoin volume. Reversal of regulatory stance or competition from CBDCs (Central Bank Digital Currencies). 1:56
LONG Katrina Paglia
Chief Legal Officer, Pantera Capital
When asked about the "safety play" in crypto, Paglia explicitly lists "real world assets, tokenization" as a key area Pantera is focused on. In a downturn ("Crypto Winter"), capital flees speculative memecoins and rotates into yield-bearing, tangible assets on-chain (Treasuries, Credit). This rotation favors protocols that tokenize these assets (Ondo) and the oracles that secure the data (Chainlink), as well as institutional issuers (BlackRock). Long the RWA (Real World Asset) leaders as the sector acts as the defensive "flight to quality" within the crypto ecosystem. Low interest rates could make on-chain treasury yields less attractive compared to DeFi native yields.
AVOID Katrina Paglia
Chief Legal Officer, Pantera Capital
The interviewer notes MicroStrategy's $12.5B mark-to-market loss. Paglia agrees that the "digital asset treasury... boom... does seem to have pulled back significantly" because investors now have "accessibility to these things more directly." The "MSTR Premium" existed because it was one of the few ways for equity investors to get BTC exposure. With mature ETFs and direct institutional access now ubiquitous, the value proposition of a corporate wrapper (with management fees/risks) holding BTC is eroding. Avoid proxy plays; the market no longer pays a premium for indirect exposure. MSTR could re-rate if they successfully pivot to becoming a profitable operating company beyond just a BTC holding vehicle.
LONG Katrina Paglia
Chief Legal Officer, Pantera Capital
When asked for the *one* area startups are looking to disrupt, Paglia highlights the intersection of AI and Blockchain: "AI is really interesting from a blockchain perspective because you have the transparency... we're starting to see projects really focus on the combination." As AI models become opaque black boxes, blockchain provides the necessary audit trail and data provenance. This convergence is the next venture capital "hot zone," implying capital inflows into protocols building this infrastructure despite the broader market downturn. Long the AI/Crypto intersection as it receives the bulk of remaining VC dry powder. High valuation bubbles in AI-specific tokens; technical challenges in scaling on-chain compute.
LONG Katrina Paglia
Chief Legal Officer, Pantera Capital
Paglia states that prediction markets are "getting mass adoption" and that "a bunch of them are popping up now." Unlike speculative trading which dries up in a bear market, prediction markets offer utility (hedging/information) that persists. Mass adoption implies sticky user growth independent of asset prices. Long the platforms facilitating decentralized betting and information aggregation. Regulatory crackdowns on gambling/betting classifications in major jurisdictions.