Pantera Capital’s Crypto Fund Skyrockets 66% in Market Optimism

Pantera Capital’s Liquid Token Fund has reportedly seen a 66% return in the first quarter of 2024, driven by investments in crypto tokens like Solana (SOL). The fund’s strong performance from January to March was also supported by assets such as Ribbon Finance (RBN) and Stacks (STX), while exposure to Bitcoin (BTC) and Ether (ETH) decreased during the period. Portfolio manager Cosmo Jiang stated that the fund has significantly reduced its Bitcoin holdings since the beginning of the year.

The RBN token has seen a remarkable rise of 400.43% this year, while SOL has gained 69.88%, outperforming Bitcoin’s 62.59% increase in value. The Pantera Liquid Token Fund, launched in November 2017, holds a pool of 10-20 liquid tokens and targets accredited investors willing to invest a minimum of $100,000. The fund primarily focuses on decentralized finance (DeFi) tokens.

Pantera Capital, a $5.2 billion asset manager and an early investor in the crypto space, has recently raised approximately $250 million to purchase SOL tokens from former crypto exchange FTX. The tokens were acquired for $64, which is around 60% lower than the current market price. The rise in SOL’s price performance has been attributed to an increase in its blockchain market dominance and the frenzy surrounding meme coins like Dogwifhat, Bonk, Cat in the Dogs World, and Book of Meme.

Institutional investors have shown interest in SOL-based investment funds, with nearly $25 million being invested in these funds in March, according to a CoinShares report. This influx of institutional capital has further supported the rising price of the token. Pantera Capital’s success in the first quarter of 2024 highlights the potential for significant returns in the crypto market, especially in tokens associated with decentralized finance and increasingly popular meme coins.