Pantera Capital, an asset management firm valued at $5.2 billion, has reported that during the first quarter of 2024, its Liquid Token Fund posted a 66% increase, driven by strong performance in tokens such as Solana and other smaller-cap assets.
Meanwhile, the fund reduced its holdings in Bitcoin and Ethereum-based tokens, as the likelihood of the latter's ETF approval in May seemed unlikely.
This decline in Bitcoin holdings has occurred every month this year. The fund's gains match Bitcoin's 66% growth and outpace the growth of Ethereum and its DeFi index.
During an interview, Cosmo Jiang, portfolio manager at Pantera Capital, stated that the fund had reduced its Bitcoin holdings by over 50% in the last three months. According to Jiang, the fund had a significant investment in Bitcoin at the beginning of the year, but has steadily decreased its position every month since then.