Pantera Capital Achieves 66% Profit in First Quarter with Focus on Solana and Bitcoin Reduction

Pantera Capital, a leading asset management firm specializing in crypto, stands out with a notable performance in the first quarter of 2024. Its Liquid Token Fund achieved an impressive 66% gain, a feat that is especially eye-catching when you consider the recent reduction in positions in Bitcoin and Ethereum by the company.

This significant advance in Q1 largely stems from the successful bet on Solana (SOL), an altcoin that has seen its value nearly double recently. Pantera Capital’s interest in Solana is nothing new, with the company launching a $250 million initiative to acquire Solana tokens at reduced prices, an opportunistic strategy amid FTX’s bankruptcy. This move came at a key time, as Solana briefly surpassed the $200 mark, consolidating its position as one of the top five cryptocurrencies by market capitalization.

In addition to its success with Solana, the fund has also benefited from investments in smaller-cap cryptocurrencies and DeFi tokens such as Ribbon Finance (RBN), Aevo, and Stacks (STX). Such choices proved to be correct, with RBN, for example, showing a jump of more than 315% since the beginning of the year, while Aevo recorded an increase of almost 200% in just three months.

However, Pantera’s decision to reduce its positions in Bitcoin and tokens related to the Ethereum network throughout this period was notable. The letter to Pantera shareholders revealed that one of the reasons for this strategic move was uncertainty regarding the approval of a spot Ether ETF in the US. “We were heavily invested in Bitcoin until the beginning of the year and, actually, each month, we significantly reduced this Bitcoin position,” said Cosmo Jiang, portfolio manager at Pantera, highlighting a tactical change in light of market trends.

Despite the reduction in Bitcoin positions, the cryptocurrency recorded an increase of more than 60% in the first quarter, reaching new all-time highs. This dynamic highlights the complexity and varied opportunities that the cryptocurrency market offers investors and fund managers.

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