Pantera Capital CEO Dan Morehead has disclosed that Solana (SOL) is now the firm's largest cryptocurrency position, with $1.1 billion worth of SOL on its books. This represents a significant shift for the institutional asset manager, which was previously "100% Bitcoin" according to Morehead's statements to CNBC.
The move comes as Pantera Capital announced its participation in the Helius Solana Treasury initiative, a program led by Pantera and Summer Capital to create a Solana-focused corporate treasury. The initiative has already raised over $500 million with a goal of scaling to $1.25 billion through additional funding and stock warrants. This treasury aims to support Solana as a reserve asset for public companies, allowing firms to generate 7-8% yields from staking and lending while maintaining conservative risk profiles.
Morehead justified the massive SOL allocation by pointing to Solana's performance over the last four years, which has significantly outperformed both Bitcoin and Ethereum. SOL's price surged from $0.61 in 2020 to over $200 at its peak, representing a return of over 28,000%. He also highlighted Solana's technical capabilities, noting the network handles "9 billion transactions a day, which is more than all capital markets combined."
While bullish on Solana, Morehead doesn't believe in a "winner-take-all" scenario for blockchain networks, comparing the ecosystem to internet companies where multiple successful protocols can coexist. However, he acknowledges Solana is currently in the lead position for Pantera's investment strategy.
The news comes amid growing institutional interest in Solana, with major firms like VanEck, Fidelity, and Franklin Templeton filing for Solana ETFs. Analysts predict a 90% or better chance of Solana ETF approval, which could bring billions more in institutional investment. Some analysts are even predicting SOL could reach $1,000 by early next year, which would push its market capitalization above $500 billion.