Pantera Capital's Liquid Token Fund Sees 66% Q1 Return; Bullish on Solana
Summary:
Pantera Capital's Liquid Token Fund enhanced its return by 66% in Q1 of 2024, powered by investments in cryptos like Solana (SOL). The substantial performance came from assets including Ribbon Finance (RBN) and Stacks (STX), while Bitcoin and Ether exposures dwindled. The fund, which targets accredited investors, recently collected around $250 million to purchase SOL tokens. Rising institutional investments and the recent memecoin wave have also positively affected SOL's price.
The Liquid Token Fund managed by Pantera Capital recorded an impressive 66% yield in 2024's initial quarter, greatly benefitted by investments in cryptos including Solana (SOL). An examination of a shareholder note by Bloomberg revealed that the robust performance staging from January through March was also fuelled by holdings in Ribbon Finance (RBN) and Stacks (STX). However, there was a decrease in tokens associated with Bitcoin (BTC) and Ether (ETH) during these months. According to Cosmo Jiang, the portfolio manager, in his interview with Bloomberg, the fund has cut its Bitcoin investments to less than half since the start of 2024. He voiced, “Starting from early this year, we had a heavy load of Bitcoin and I am quite pleased to see a noticeably reduced Bitcoin cleanout each month so far,”. TradingView data shows a rise of 400.43% in RBN token value this year to date, with SOL recording a gain of 69.88%, outdoing Bitcoin's appreciation rate of 62.59% in 2024.
Debuted in November 2017, the Pantera Liquid Token Fund accommodates a collection of 10-20 liquid tokens. It is structured to attract accredited investors who are open to a minimum commitment of $100,000, with a focus mainly on decentralized finance (DeFi) tokens. Pantera Capital, a $5.2 billion asset managerial body and a forerunner investor in cryptocurrency, has recently garnered close to $250 million for the acquisition of SOL tokens from previous crypto exchange FTX. It is reported that the tokens were bought at $64, about 60% beneath the prevailing market value. The effective price performance of SOL is credited to its growing market share within the blockchain industry and the thrill surrounding memecoins. On April 3rd, memecoins such as Dogwifhat and Bonk witnessed an escalation in their demand, along with newly introduced Cat in the Dogs World and Book of Meme. As per a report by CoinShares, institutional investors invested nearly $25 million into SOL-based Investment funds in March thereby leading to a surge in its token price.
Published At
4/6/2024 10:57:00 PM
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