Digital asset manager Osprey Funds has laid off 15 employees and is currently operating with fewer than 10 employees, according to a source familiar with the matter.
The news comes as the cryptocurrency market continues to struggle, with digital asset prices plunging and leading to the collapse of some heavily-leveraged investors. Despite the layoffs, Osprey CEO Greg King maintains that the company “remains strong”.
Osprey’s Bitcoin Trust (OBTC), which is available at major online brokers like Fidelity, Charles Schwab, and TD Ameritrade, had approximately $46.9 million in assets under management as of January 6.
When including its trusts for BNB, Solana, Polkadot, and Algorand, the company has a total of $67.6 million in assets under management.
According to a report on Yahoo Finance, Osprey tried to launch a hedge fund back in August of 2022, but the attempt failed, and management informed its staff that the latest cuts were due to this failure.
The cryptocurrency market continues to face challenges, with investor appetite for risky assets shrinking and leading to a downturn in the industry. This has resulted in bankruptcies and layoffs, as well as a general decline in digital asset prices. It remains to be seen how Osprey and other companies in the space will navigate these challenges going forward.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2023/01/crypto-asset-manager-osprey-cuts-most-of-its-employees