Ripple Surpasses Kraken as Top Holding in C1 Fund’s Largest Private Investment

What Drove C1 Fund’s Increased Allocation to Ripple?

Ripple Labs became the largest private company holding in C1 Fund’s portfolio during the second quarter of 2026, accounting for 17.5% of the NYSE-listed fund’s net assets as of June 30. This marks a shift from the previous quarter when Kraken held the top position. The change reflects C1 Fund’s ongoing reallocation toward blockchain infrastructure firms with strong regulatory engagement and enterprise adoption metrics.

The fund’s move comes amid growing institutional interest in companies that bridge traditional finance and digital assets. Ripple’s focus on cross-border payment solutions and its ongoing legal resolution with the U. S. Securities and Exchange Commission have contributed to renewed investor confidence. C1 Fund did not disclose the exact value of its Ripple stake but confirmed the holding increased through additional purchases during Q2 2026.

C1 Fund cited Ripple’s expanding partnerships with central banks and financial institutions as a key factor in its decision to increase exposure. The company’s On-Demand Liquidity service has seen increased usage in corridors involving Asia and Latin America, according to third-party payment data. Analysts note that Ripple’s compliance-oriented approach distinguishes it from many peers in the digital asset space, making it more palatable to regulated investment vehicles like C1 Fund.

How Does This Shift Affect C1 Fund’s Overall Portfolio Composition?

The fund’s strategy emphasizes long-term holdings in private technology firms with clear paths to liquidity or public listing. Ripple’s potential future IPO, though unconfirmed, remains a topic of discussion among investors. C1 Fund’s manager noted in a private investor letter that the firm seeks „companies building real utility in digital finance,” a description that aligns with Ripple’s current market positioning.

With Ripple now at 17.5% of net assets, the fund’s concentration in its top two private holdings has increased. Kraken remains a significant holding but fell to second place after the Q2 adjustments. The fund’s exposure to private digital asset companies now exceeds 30% of its total portfolio, up from approximately 25% at the start of the year.

This shift underscores a broader trend among specialty funds allocating capital to infrastructure providers rather than speculative tokens. C1 Fund’s turnover rate remained low during the quarter, indicating conviction in its top holdings. The firm has not indicated plans to reduce its Ripple position in the near term, suggesting confidence in the company’s trajectory.

Frequently Asked Questions

What percentage of C1 Fund’s net assets is now held in Ripple? Ripple represents 17.5% of C1 Fund’s net assets as of June 30, 2026, making it the fund’s largest private holding.

Why did Ripple overtake Kraken as C1 Fund’s top holding? C1 Fund increased its stake in Ripple during Q2 2026 due to the company’s growing enterprise adoption and regulatory progress, while Kraken’s relative position decreased following portfolio rebalancing.

Is C1 Fund planning to sell its Ripple stake soon? The fund has not disclosed any plans to reduce its Ripple exposure and continues to view it as a long-term strategic holding based on utility and compliance factors.