Digital asset manager Osprey Funds has laid off most of its staff since the summer, underscoring the ongoing operational challenges posed by the enduring cryptocurrency bear market.
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. ANDCEO Greg Kling told the publication that the layoffs were consistent with the market downturn and that Osprey was not at risk of going out of business.
Osprey offers accredited investors access to cryptocurrency-focused investment products, including an over-the-counter Bitcoin (BTC) fund that can be purchased within brokerage accounts.
Crypto playoffs are in fashion.
The community doesn’t stay quiet. https://t.co/XJrxRXqvR9
— Cointelegraph (@Cointelegraph) December 5, 2022
Crypto layoffs are all the rage.
The community does not stand still.
Institutional appetite for cryptocurrency products has declined significantly over the past year, reflecting subdued demand for riskier assets following tightening liquidity conditions around the world. 2022 was the worst year in over a decade for global equities and fixed income, so it wasn’t just the crypto sector that was affected.
Nevertheless, There are some positive signs that institutional investors are taking an interest in cryptocurrencies again. A Coinbase-sponsored survey between September 21 and October 27 revealed that 62% of institutional investors had increased their exposure to digital assets in the past 12 months.
Layoffs in the cryptocurrency sector have multiplied since the summer, with major exchanges announcing job cuts amid declining revenues. In November, Coinbase laid off more than 60 employees, just months after cutting 18% of its workforce. Kraken also announced in November that he was laying off 30% of his global workforce.
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