Blockchain.com is shutting down its Blockchain.com Asset Management subsidiary, according to reports and a filing showing its name struck off the UK companies’ registry. A spokesperson for the company cited worsening “macroeconomic conditions” and the “crypto winter” as some of the reasons for halting the institutional business.
The impact of crypto winter on the cryptocurrency industry
Over the past two days, the downward pressure of the crypto winter looks set to continue, as the global crypto market capitalization has fallen 6.82% in the past day to $931 billion. In addition, there has been a contagion of failing crypto firms and bankruptcies across the industry, as well as significant layoffs, with no firm appearing to be spared. On Friday, reports detailed that Blockchain.com is shutting down its London-based subsidiary, Blockchain.com Asset Management (BCAM), and market observers noted that the firm has been delisted from the UK companies’ registry.
A spokesperson for the company has spoken to Emily Nicollea Bloomberg News correspondent who was first to report on the news. “Scoop: [Blockchain.com] has suspended its asset management arm and moved to close the unit exactly 11 months after it was launched. At the time, the firm cut hundreds of jobs and saw its valuation potentially shrink to a fraction of its previous $14 [billion in] size,” Nicolle tweeted. Nicolle reached out to Blockchain.com, and a spokesperson provided comment on the BCAM situation.
“Blockchain.com Asset Management launched in April 2022, shortly before macroeconomic conditions deteriorated rapidly,” a spokesperson told Nicolle by email. “As the ‘crypto winter’ now approaches the one-year mark, we made the business decision to cease operations of this institutional product.” BCAM was formed through a partnership between Blockchain.com and Altis Partners. When BCAM was announced, it was intended to attract high net worth individuals, institutional investors and family offices.
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Altis Partners, Asset Management, Bankruptcies, Blockchain, Bloomberg News, Business Decision, Company Valuation, Contagion, Crypto Firms, Crypto Winter, Cryptocurrency, Digital Assets, Financial Affairs, Family Offices, Financial Markets, Financial Services, Global Economy, High-Net – Worth Individuals, Industry Challenges, Industry Impact, Industry Turmoil, Institutional Investors, Institutional Products, Redundancies, Market Cap, Market Observer, Partnerships, Regulatory Landscape, UK Companies Register
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Jamie Redman
Jamie Redman is the news editor at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
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