Key Points
- Pantera Capital reported a 66% gain for its Liquid Token Fund in Q1 2024, led by Solana and smaller-cap tokens.
- The fund decreased its holdings in Bitcoin and Ethereum-based tokens significantly.
Pantera Capital, an asset manager with $5.2 billion under management and a primary focus on blockchain technology and digital assets, recorded a 66% increase for its Liquid Token Fund in the first quarter of 2024.
Solana and Smaller Tokens Lead the Way
The fund’s gains were primarily driven by Solana and smaller-cap tokens such as Ribbon Finance, Aevo, and Stacks, as reported by Bloomberg. Interestingly, the fund sold large portions of its holdings in Bitcoin and Ethereum-based tokens during this period.
The Liquid Token Fund’s manager revealed that the fund has been systematically reducing its significant Bitcoin holdings each month this year. Furthermore, the fund has been divesting from positions related to Ethereum-based tokens as the prospects for ETF approval in May have appeared increasingly unlikely.
Comparable to Bitcoin’s Growth
The fund’s gains are roughly on par with Bitcoin’s 66% growth year-to-date, surpassing Ethereum’s growth and the growth of the DeFi index.
In a previous move, Pantera set up a $250 million fund to buy locked Solana tokens from the FTX bankruptcy estate, despite some legal controversy surrounding the ownership of these tokens.
