Anticipating Altseason, Pantera announces the start of transitioning to holding competitor coins, with a performance of 47% in January.

Pantera Capital's fund, the Liquid Token Fund, which experienced an 80% decline last year, has announced plans to shift towards holding more competing coins. The fund's overall performance also saw a strong increase of 47.3% in January.

January Performance 47.3%

According to a recent investor conference call by Pantera, the Liquid Token Fund typically holds 15 to 25 cryptocurrencies, although last year mainly focused on BTC and ETH, resulting in a yearly performance of -80%.

Pantera's Chief Investment Officer, Joey Krug, mentioned that the performance was impacted by the FTX incident, but they sold off related assets early in the event, such as selling SOL at around $20, avoiding the subsequent decline to below $10.

Furthermore, Pantera has shifted its holdings to coins they believe may outperform ETH in the future cycle, resulting in an overall performance of 47.3% since the beginning of the year.

According to the presentation, ETH contributed the most to the 47% performance in January and is still the largest position held by the fund, followed by Optimism and Uniswap.

Positions with lower allocations like Maker, Stader, and Mirror have also seen significant increases.

L2 Bullish on Arbitrum

Joey Krug mentioned that the fund currently holds many protocol tokens dedicated to Layer 2 scaling, and compared to Optimism, they are more bullish on Arbitrum. Pantera is also one of the seed round investors, even though Arbitrum has not yet launched its token.

He believes that Layer 2 scaling will be a major narrative in the next bull market cycle. Pantera's strategy is to hold base layer public chain tokens in bear markets, while the proportion of other tokens held in bull markets will be much higher than L1 tokens, as they expect most competing tokens to outperform L1.

Pantera is gradually shifting towards holding competing tokens.