Pantera Capital’s Liquid Token Fund has reportedly achieved a remarkable 66% return in the first quarter of 2024, driven by investments in various crypto tokens such as Solana’s (SOL). According to a shareholder letter reviewed by Bloomberg, the fund’s strong performance from January to March was also fueled by assets like Ribbon Finance (RBN) and Stacks (STX), while exposure to tokens tied to Bitcoin (BTC) and Ether (ETH) decreased during the period.
The fund’s portfolio manager, Cosmo Jiang, informed Bloomberg that the fund has significantly reduced its Bitcoin holdings since the beginning of the year. “We had a substantial investment in Bitcoin until the start of the year, and I am pleased to say that we have consistently decreased our Bitcoin position each month,” he stated.
TradingView data shows that the RBN token has surged by 400.43% year-to-date, while SOL has seen gains of 69.88%, outperforming Bitcoin’s 62.59% appreciation in 2024.
The Pantera Liquid Token Fund was launched in November 2017 and holds a portfolio of 10-20 liquid tokens. It is designed for accredited investors who are willing to commit a minimum of $100,000 and primarily focuses on decentralized finance (DeFi) tokens.
Pantera Capital, a $5.2 billion asset manager and an early investor in the crypto industry, recently raised approximately $250 million to buy SOL tokens from former crypto exchange FTX. The tokens were purchased at a price 60% lower than the current market price.
The impressive price performance of SOL can be attributed to its increasing dominance in the blockchain market and the frenzy surrounding memecoins. On April 3, memecoins like Dogwifhat and Bonk continued to gain popularity, along with the recently launched Cat in the Dogs World and Book of Meme. Institutional investors also showed their confidence in SOL, pouring nearly $25 million into SOL-based investment funds in March, which further supported the token’s price surge.
In summary, Pantera Capital’s Liquid Token Fund has achieved substantial returns in the first quarter of 2024, driven by investments in crypto tokens like SOL. The fund’s strategic reduction of Bitcoin holdings and exposure to other assets has contributed to its impressive performance. SOL’s price surge can be attributed to its growing dominance in the blockchain market and the increasing interest in memecoins.