Pantera Capital Liquid Token fund saw a remarkable 66% gain in the first quarter of this year. The fund’s total size exceeds $300M. These massive gains were mainly accumulated through cryptocurrencies like $SOL, $RBN, $AEVO, and $STX. The fund’s stellar performance comes at a time when Pantera is strategically reducing its exposure to Ethereum ecosystem tokens. This decision is mainly influenced by several factors especially the decreasing likelihood of the United States approving a spot ETH ETF.
Pantera Capital’s Portfolio Adjustments Reflect Shifting Market Dynamics
The significant gains in digital assets like RBN, AEVO, and STX, combined with Solana’s impressive performance, contributed substantially to the fund’s success from January to March. Bitcoin’s surge of 67% in quarter 1, reaching a record high of $73,700 by mid-March before undergoing a slight correction, was notable. Similarly, Solana nearly doubled in value over the same period, trading at $176 at the press time, showcasing its strong appeal to investors.
The Liquid Token Fund made strategic adjustments by reducing investments in Ethereum blockchain-linked coins due to prevailing headwinds. In an interview, Cosmo Jiang, a portfolio manager at Pantera Capital, mentioned that the fund had notably reduced its Bitcoin holdings over the preceding three months. He indicated that they had held a substantial amount of Bitcoin until the beginning of the year and emphasized that they had consistently decreased their Bitcoin position each month thereafter.
Pantera Capital’s Impact on Crypto Market
The surge in Bitcoin, which has quadrupled in value since the beginning of 2023, was partly driven by the introduction of US ETFs. This upward trend boosted risk appetite, leading to notable gains in smaller tokens and meme-crowd favorites like $DOGE and $WIF. However, the cryptocurrency market rally has tapered off since Bitcoin hit its all-time high, as traders adjusted their positions amid profit taking.
Pantera Capital, an asset manager with assets totaling $5.2B, has been actively involved in crypto investments since 2013. It offers various products tailored to investors’ needs. In a report earlier this year, the company was in the process of raising funds for a new fund aimed at purchasing up to $250M worth of Solana ($SOL) from the FTX estate.
