Pantera Capital’s crypto fund surges 66% amid market optimism

Pantera Capital’s crypto fund surges 66% amid market optimism

Pantera Capital’s Liquid Token Fund reportedly posted a 66% return in the first quarter of 2024, driven by investments in crypto tokens such as Solana (SOL).

According to a shareholder letter reviewed by Bloomberg, the fund’s strong performance from January to March was also propelled by assets such as Ribbon Finance (RBN) and Stacks (STX), while exposure to tokens tied to Bitcoin (BTC) and Ether (ETH) decreased during the period.

Portfolio manager Cosmo Jiang told Bloomberg the fund has reduced its Bitcoin holdings by more than half since the beginning of the year. “We’d been pretty heavy in Bitcoin until the start of the year, and I really like each month we’ve decreased that Bitcoin position meaningfully,” he said.

Data from TradingView shows the RBN token rising 400.43% so far this year, while gains for SOL stand at 69.88%, outperforming Bitcoin’s 62.59% appreaciation in 2024. 

SOL token performance year-to-date. Source: TradingView

Related: FTX founder SBF asks for a 6.5-year sentence, tells prison guards to invest in Solana

Launched in November 2017, the Pantera Liquid Token Fund holds a pool of 10-20 liquid tokens. The fund is designed for accredited investors willing to commit a minimum of $100,000 and primarily targets decentralized finance (DeFi) tokens.

Pantera Capital is a $5.2 billion asset manager and an early investor in the crypto space. The firm has recently raised around $250 million to buy SOL tokens from former crypto exchange FTX. The tokens were reportedly purchased for $64, about 60% below the current market price.

SOL’s price performance has been attributed to a rise in its blockchain market dominance and the memecoins frenzy. On April 3, memecoins like Dogwifhat and Bonk continued to rise in popularity, along with the recently launched Cat in the Dogs World and Book of Meme. According to a CoinShares report, institutional investors poured almost $25 million into SOL-based investment funds in March, supporting the token’s price rise.

Magazine: 5 dangers to beware when apeing into Solana memecoins