Crypto hedge fund Pantera Capital, which has more than $5 billion in assets under management, reportedly saw its Liquid Token Fund rise 66% in the first quarter of 2024.
According to a new one report by Bloomberg Pantera Capital’s $300 million crypto fund ended the first quarter with huge gains due to the rise of digital assets such as smart contract platform Solana (SOL), decentralized derivatives exchange Aevo (AEVO), decentralized finance (DeFi) protocol Ribbon Finance (RBN) and open source blockchain stacks (STX).
Pantera’s success was partly due to its reduced exposure to Bitcoin (BTC) and Ethereum (ETH) and its allocation to smaller market cap altcoins.
A shareholder letter seen by Bloomberg noted that Pantera has cut back on assets tied to Ethereum because an Ethereum-based exchange-traded fund (ETF) is less likely to be approved by the U.S. Securities and Exchange Commission (SEC). .
In an interview, Cosmo Jiang, Pantera Capital’s portfolio manager, told Bloomberg that the fund has steadily reduced its exposure to Bitcoin since the beginning of the year.
“We were quite heavy in Bitcoin until the beginning of the year, and every month we have meaningfully reduced that Bitcoin position.”
Last month, Pantera was funding efforts to raise $250 million as a means to buy Solana from bankrupt crypto exchange FTX.
SOL, AEVO, RBN and STX are trading at $177.29, $2.96, $1.61 and $3.19 respectively at the time of writing.
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