The crypto bear market has taken its toll on another investor. Protocol Ventures LP, a US-based investor in crypto hedge funds, will close down and return cash amid the downtrend in the market for digital assets, Bloomberg reported on 3 November.
Unfortunately, the latest shutdown follows several other companies in the crypto market that went bust during the downturn. Singapore-based Three Arrows Capital filed for bankruptcy in July, while crypto lender Celsius Network filed for Chapter 11 bankruptcy protection around the same time. Besides, crypto companies are laying off staff and freezing withdrawals, raising concerns in the market. Other firms that shut shop include Voyager, Zipmex, Vauld, Hodlnaut, and Core Scientific.
The global market capitalization of the crypto sector has fallen to around $1 trillion from over $3 trillion a year ago, according to CoinGecko.
Protocol Ventures is expected to close by the end of this year or the first quarter of 2023, according to the Bloomberg report. The firm, one of the leading fund of funds in the crypto asset class, reportedly sent notices to investors at the end of October about the move.
About Protocol Ventures
Protocol Ventures is a fund of crypto hedge funds founded in 2017 by entrepreneur and venture capitalist Rick Marini. Protocol Ventures has invested in the likes of Multicoin Capital, Pantera Capital, and Electric Capital. The Fund’s decision to wind up comes as Protocol reportedly lost as much as 90% over the past year.