Institutional demand for Bitcoin and other crypto assets has waned due to the bear market.
Digital asset manager Osprey Funds has reportedly laid off most of its staff since the summer, underscoring the ongoing operational challenges posed by crypto’s enduring bear market.Â
Yahoo Finance reported on Jan. 9 that Osprey Funds is currently operating with fewer than ten employees after laying off 15 staff members since the summer. CEO Greg Kling told the publication that the layoffs were consistent with the market downturn and that Osprey was not at risk of closing operations.
Osprey offers accredited investors access to crypto-focused investment products, including an over-the-counter Bitcoin (BTC) trust that can be purchased inside brokerage accounts.
Crypto layoffs are in fashion.
The community doesn’t stay quiet. https://t.co/XJrxRXqvR9
— Cointelegraph (@Cointelegraph) December 5, 2022
Institutional appetite for crypto products has waned significantly over the past year, reflecting subdued demand for riskier assets in the wake of tightening liquidity conditions worldwide. 2022 was the worst year in over a decade for global equities and bonds, so it wasn’t just crypto that was affected.
Nevertheless, there are some positive signs that institutional investors are warming to crypto again. A Coinbase-sponsored survey between Sep. 21 and Oct. 27 found that 62% of institutional investors had increased their exposure to digital assets over the past 12 months.
Related: Huobi confirms 20% layoffs, denies insolvency rumors
Layoffs in the crypto industry have mounted since the summer, with leading exchanges announcing job cuts amid declining revenues. In November, Coinbase reportedly laid off more than 60 employees, mere months after slashing 18% of its workforce. Kraken also announced in November that it was laying off 30% of its global workforce.
