The Pantera Bitcoin Fund was set up in 2013, when few on Wall Street were interested in cryptocurrencies. It has bitcoin hedge fund ridden the Bitcoin wave to blockbuster returns.

Internet Explorer 9 or earlier. Go to the home page to see the latest top stories. SAN FRANCISCO — There are hedge funds with blockbuster returns. Then there is the Pantera Bitcoin Fund. The fund — one of the first in the world to dedicate itself to virtual currencies — released its returns in a letter sent to investors on Tuesday. The figure for the life of the fund, which was set up in 2013, is eye popping: 25,004 percent.

Since 2013, the Pantera Bitcoin Fund’s compound annual returns have been around 250 percent. The Pantera Bitcoin Fund did not have to do much to get those returns. It just bought Bitcoins and held them as the price went up. But Dan Morehead, who founded Pantera Capital and the fund after a career at Goldman Sachs, said it was not an easy decision to create a Bitcoin-focused hedge fund in 2013, when Bitcoin was primarily known as a currency for online drug markets.

Many of the investors in the Pantera fund have not enjoyed its full 25,004 percent return. Some bought in at the beginning and then sold out when Bitcoin’s price was in a slow steady decline during 2014 and 2015. Others bought in during the current boom and have reaped only the returns that Bitcoin has experienced over the last year. Those still aren’t bad, at around 1,900 percent.

Those gains have given Pantera a lot of competition. 175, according to the research firm Autonomous Next. 1 billion for its investors. 7 billion to hold for themselves, to avoid paying Pantera’s 0. 150 million into the fund. Like all hedge funds, Pantera is open only to accredited investors with significant assets.

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View all New York Times newsletters. The relatively straightforward strategy of the Pantera Bitcoin Fund, which has offices in San Francisco, could be replicated by small investors buying and holding Bitcoins. 5 percent to 4 percent each time they buy or sell Bitcoin, creating more costs than Pantera charges its investors. Morehead said his fund has been attractive because it allows investors access to Bitcoin without going to Bitcoin exchanges, the places where people buy and sell the tokens, which have been hacked many times in recent years. Several of the fund’s early investors came from the top ranks of the enormous asset manager the Fortress Investment Group. There have been a number of attempts to set up a similar fund for small investors, a so-called exchange traded fund, or E.