As per latest reports, crypto hedge funds investor, Protocol Ventures LP, will shut down and return cash due to the consistent crypto market slump.
According to people familiar with the matter, the US-based firm has begun the formalities of the shutting down process. In fact, at the end of October, notices were sent to investors informing them about this decision.
One of them also revealed:
Protocol Ventures has invested in crypto asset investment firms like BlockTower Capital, Electric Capital., Multicoin Capital, and Pantera. The move to shut the firm came as the crypto sector is cutting down costs due to the economic crisis.
Crypto hedge funds saw a boom in 2021 during an outburst in speculative investments caused due to the phenomenon of ‘liquidity injections’. Liquidity injections were taken up to handle the worst of the pandemic.
But the boom came to a gradual stop after central banks all around the world hiked interest rates to combat inflation. Infact, the hawkish stance of the policies toughened financial conditions and made investors restrict their risky investments.
The post Crypto Hedge Funds Investor to Shut Down Due to Market Slump appeared first on Coin Edition.
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Source: Cryptocurrency - investing.com
