The Liquid Token Fund of Pantera Capital increased its allocations to DeFi tokens during the first quarter of 2024 while decreasing its exposure to Bitcoin and Ether.
Solana and other cryptocurrency token investments helped Pantera Capital’s Liquid Token Fund, which claimed a 66% return in the first quarter of 2024.
While exposure to tokens linked to Bitcoin and Ether declined throughout the period, assets like Ribbon Finance (RBN) and Stacks contributed to the fund’s outstanding performance from January to March, according to a shareholder letter that Bloomberg saw.
The fund’s holdings of Bitcoin have decreased by more than half since the start of the year, according to Bloomberg, which was informed by portfolio manager Cosmo Jiang.
“We had a significant stake in Bitcoin until the beginning of the year, and I really like how each month we’ve reduced that position,” he remarked.
TradingView data reveals that the RBN token has increased 400.43% so far this year, while SOL has gained 69.88%, surpassing Bitcoin’s 2024 appreciation of 62.59%.
The Pantera Liquid Token Fund was established in November 2017 and now manages a pool of 10–20 liquid tokens. The fund focuses mostly on decentralised finance (DeFi) tokens and is intended for authorised investors with a minimum $100,000 commitment.
As one of the first investors in the cryptocurrency market, Pantera Capital is a $5.2 billion asset manager. To purchase SOL tokens from the defunct cryptocurrency exchange FTX, the company recently raised over $250 million. According to reports, the tokens were bought for $64, which is almost 60% less than the going rate.
The surge in SOL’s supremacy in the blockchain market and the craze for memecoins have been credited with driving its price performance. On April 3, the freshly released Cat in the Dogs World and Book of Meme, together with memecoins like Dogwifhat and Bonk, began to gain traction. Institutional investors reportedly invested about $25 million in SOL-based investment funds in March, which helped the token’s value increase, according to a CoinShares report.