Blockchain.com to close department for asset management
Blockchain.com will wind down its asset management arm after less than a year of operation, according to a report from Bloomberg on March 9.
Blockchain.com will shut down its subsidiary
Through its asset management division, Blockchain.com offered an investment strategy that tracked the price of Bitcoin against the dollar. It also planned to offer “algorithm-based risk-managed exposure” to Bitcoin, according to Bloomberg reports.
Blockchain.com has yet to officially announce the decision. However, the subsidiary has applied to be removed from the UK company register in a filing.
This filing, dated March 6, is currently publicly viewable.
The company’s first notice of voluntary delisting, which will inform creditors of the subsidiary’s closure more broadly, will be made public on March 14.
Capital management lasted less than a year
Blockchain.com’s short-lived asset management service went live just 11 months ago.
Blockchain.com performed strongly last year. Although it is now valued at just $3 to $4 billion, it completed a fundraise that took it to a $14 billion valuation. This growth allowed it to launch its wealth management service in April 2022.
A spokesperson said Blockchain.com opened the service in April 2022 “shortly before macroeconomic conditions deteriorated rapidly.” Although the firm did not mention specific events, various crypto projects including Terra and Celsius collapsed at the time.
The decision is just one of Blockchain’s recent downsizing strategies. The firm laid off about 28% of its workforce in January following previous layoffs in July 2022.
Decision should not affect most users
It does not appear that the decision will affect Blockchain.com’s retail users.
Blockchain.com offers a moderately sized crypto exchange, with $3.2 million in trading volume in the last 24 hours, according to data from Coingecko.
The company also offers various other services, including a cryptocurrency wallet, an on-chain data explorer, and various institutional services.
The company operates in the UK but serves users in multiple locations.
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