Pantera Capital, a leading asset management firm focused on cryptos, has marked an impressive performance in the first quarter of 2024, with its Liquid Token Fund recording a substantial profit of 66%. Despite the fund’s recent divestment from significant holdings in Bitcoin and Ethereum-linked assets, Pantera managed to capitalize on investments in digital assets, particularly Solana (SOL).
The surge in Solana’s value, nearly doubling in recent months and briefly surpassing $200, has notably contributed to Pantera’s success. In March, the firm initiated a $250 million endeavor to acquire discounted Solana tokens from the estate of the now-bankrupt FTX. Currently valued at approximately $179, Solana is the fifth largest crypto by market capitalization, witnessing a 2.3% increase in the past 24 hours.
Additionally, smaller-cap cryptos and DeFi tokens such as Ribbon Finance (RBN), Aevo, and Stacks (STX) have bolstered Pantera’s Liquid Token Fund. The RBN token has soared by over 315% year-to-date, while Aevo and Stacks have witnessed remarkable growth rates of nearly 200% and over 110%, respectively, in 2024.
However, Pantera’s strategy also involved downsizing its Bitcoin holdings throughout the first quarter, alongside reducing exposure to tokens linked to the Ethereum network. This move was partly influenced by the uncertainty surrounding the approval of a spot Ether exchange-traded fund (ETF) in the United States. Despite Bitcoin’s rise of over 60% in the first quarter, Pantera remains cautiously optimistic amid market fluctuations, leveraging its diversified portfolio to effectively navigate the dynamic crypto landscape.
