Pantera Capital's fund underperformed in the first quarter, making a profit of 66% with SOL and small coins.

According to a report from Bloomberg, Pantera Capital's crypto fund, the Liquid Token Fund, saw a 66% increase in the first quarter of this year, driven mainly by the rise of smaller tokens such as Solana SOL, RBN, Aevo, and STX, and has sold off most of its Bitcoin and Ethereum holdings this year. Additionally, Pantera Capital also acquired Solana SOL tokens at a significant discount from the bankrupt team at FTX.

First Quarter Fund Led by SOL Surges 66%

Pantera manages $5.2 billion in blockchain-related assets and currently has four funds, with a minimum investment of $100,000.

The Liquid Token Fund, established in November 2017, reported a remarkable 66% gain in the first quarter of this year, according to Bloomberg. The surge was primarily led by Solana SOL, Ribbon Finance RBN, Aevo, and Stacks STX, with most positions in Bitcoin BTC and Ethereum ETH being sold off. The fund manager explained that the fund has been meaningfully reducing its "large" Bitcoin holdings every month and has been exiting positions related to Ethereum tokens as the chances of a May approval for an Ethereum spot ETF seem increasingly slim.

FTX Buys SOL at a Discount of $64 from FTX

According to previous reports, Pantera Capital is raising funds from large investors in an attempt to acquire Solana SOL tokens at a significant discount from the bankrupt FTX team. Subsequently, Bloomberg also reported that FTX sold 25 to 30 million SOL tokens still in lockup to companies like Galaxy Trading and Pantera Capital at a price of $64 per token. Galaxy raised $620 million, while Pantera Capital raised $250 million. Insiders indicated that this could bring $1.9 billion in funds to FTX.

Pantera plans to purchase SOL from FTX's restructuring party, with the ability to pledge, a 50% discount, and a four-year lockup period.