Marco Santori, the general partner at Pantera Capital, highlighted the unique and dynamic investment strategy of DeFi Development Corp within the Solana 
$143 network as being far superior to traditional exchange-traded funds (ETFs). By leveraging Solana’s network, Santori explained that the firm surpasses the simple, price-indexed passive investment by engaging in on-chain activities and staking.
Innovative Investment Strategy with DeFi
Speaking at a session organized by The Block in May, Santori recounted how DeFi Development Corp initially specialized in real estate software but shifted its focus at the beginning of the year towards accumulating Solana. This strategic pivot aims for a more comprehensive investment approach beyond mere price gains. The company’s operations directly on blockchain offer additional income opportunities for investors.
The initial plan was to accumulate Solana as a better alternative to ETFs, providing unique advantages such as engaging with DeFi.
Emphasizing Staking and Liquidity Provision
Santori revealed that Pantera Capital has invested in DeFi Development Corp and holds a position on its board. In April, Pantera purchased $9.6 million worth of Solana and retains more than 400,000 SOL. While U.S. ETFs face legal restrictions in staking digital assets, DeFi Development Corp can actively engage in staking due to its legal status.
Staking is our primary strategy. ETFs cannot do this currently. As an active company, DeFi Dev Corp can serve as a liquidity provider in DeFi and participate in liquidity pools—operations impossible for a simple, passive fund.
Significant developments are also taking place on the Solana network. A recent Alpenglow upgrade claims to accelerate the transaction confirmation process, potentially reducing block confirmation times to approximately 150 milliseconds, according to Anza Research Chairman Roger Wattenhofer.
Solana and Developments in Crypto Markets
The price of SOL has seen a recent surge, trading at $179.05 with a daily increase of 4.6% and a 21.6% rise over the past 30 days. This upward momentum parallels the broader recovery in cryptocurrency markets and Bitcoin 
$91,967 breaking records.
Pantera Capital’s model, involving significant SOL holdings and direct blockchain activity, offers more options compared to traditional ETF models. Participation in DeFi enables the company to generate income from both liquidity pools and staking activities.
The collaboration between investment firms and DeFi applications suggests innovative pathways in digital asset investments. Particularly, the strict regulations governing ETFs encourage the evolution of alternative models. The example provided by Pantera Capital and DeFi Development Corp stands as a current illustration of this trend.
Pantera Capital’s Solana-centric DeFi strategy aims to provide more flexible and yield-focused opportunities compared to traditional financial products. The legal restrictions on some active blockchain activities by ETFs in U.S. markets pave the way for enterprises like DeFi Development Corp. Meanwhile, technological upgrades within the Solana ecosystem and positive trends in the overall crypto market continue to highlight these dynamic investment approaches.
