Key Takeaways
- • Ripple Labs surpassed Kraken parent company Payward to become the largest holding in NYSE-traded C1 Fund, representing 17.5% of net assets versus Payward's 16.9% allocation as of Q2 2026.
- • C1 Fund generated approximately 150% returns on its Ripple investment within four months, driven in part by Ripple's partial share repurchase program.
- • The fund reported a net asset value of $6.49 per share at quarter-end and allocated $33.07 million across 11 private digital asset companies during the period.
- • Polymarket joined C1 Fund's portfolio during Q2 2026, signaling institutional expansion into digital prediction markets alongside traditional crypto infrastructure exposure.
- • Institutional demand for private crypto company exposure continues to accelerate, with specialized funds like C1 and traditional equity portfolios such as Kinetics Internet Portfolio increasing allocations to digital asset sector holdings.
Summary
Ripple Labs has emerged as the dominant position in C1 Fund's portfolio, a development that underscores sustained institutional appetite for exposure to private digital asset companies. According to Q2 2026 disclosures filed by the New York Stock Exchange-listed fund, Ripple represented 17.5% of C1 Fund's net assets, narrowly edging out Kraken's parent company Payward, which held 16.9% of the portfolio. The fund closed the quarter with a net asset value of $6.49 per share.
The performance metrics on the Ripple position have been exceptional. C1 Fund disclosed that it generated approximately 150% returns on its Ripple investment within a four-month window, with the fund attributing a portion of this gain to Ripple's partial share repurchase program. This result reflects both the appreciation of Ripple's valuation and the capital efficiency of the company's buyback strategy, which reduced share count and increased per-share value for existing shareholders including the fund.
Beyond the top two holdings, C1 Fund deployed capital across a diversified basket of private digital companies. The fund allocated $33.07 million across 11 private digital asset firms during the quarter, broadening its exposure beyond traditional cryptocurrency infrastructure. Notably, Polymarket, a decentralized prediction market platform, joined the portfolio during Q2 2026, indicating the fund's willingness to explore emerging use cases and platforms within the digital asset ecosystem.
The concentration of institutional capital in private crypto companies extends beyond C1 Fund. Traditional equity vehicles such as the Kinetics Internet Portfolio have also increased exposure to the sector, reflecting a structural shift in how institutional investors view digital asset infrastructure and blockchain-native companies. This trend suggests that investor appetite for private crypto company equity has matured beyond niche specialist funds into broader institutional portfolios.
The performance metrics on the Ripple position have been exceptional. C1 Fund disclosed that it generated approximately 150% returns on its Ripple investment within a four-month window, with the fund attributing a portion of this gain to Ripple's partial share repurchase program. This result reflects both the appreciation of Ripple's valuation and the capital efficiency of the company's buyback strategy, which reduced share count and increased per-share value for existing shareholders including the fund.
Beyond the top two holdings, C1 Fund deployed capital across a diversified basket of private digital companies. The fund allocated $33.07 million across 11 private digital asset firms during the quarter, broadening its exposure beyond traditional cryptocurrency infrastructure. Notably, Polymarket, a decentralized prediction market platform, joined the portfolio during Q2 2026, indicating the fund's willingness to explore emerging use cases and platforms within the digital asset ecosystem.
The concentration of institutional capital in private crypto companies extends beyond C1 Fund. Traditional equity vehicles such as the Kinetics Internet Portfolio have also increased exposure to the sector, reflecting a structural shift in how institutional investors view digital asset infrastructure and blockchain-native companies. This trend suggests that investor appetite for private crypto company equity has matured beyond niche specialist funds into broader institutional portfolios.
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