Blockchain.com Shutting Down Asset Management Unit, Cites Bumpy Crypto Winter
The prominent crypto financial service provider in Luxembourg, Blockchain.com, has announced plans to seize the operation of its asset management unit. An official announcement from Blockchain.com dated March 9 revealed that the prolonged crypto winter and impulses of the macroeconomic condition prompted the company to sunset its London asset management unit (BCAM).
The BCAM initiative has been running since April 2022, aiming to provide institutional investors with various asset management products.
Impact of Crypto Winter
The Blockchain.com team lamented that the ripple effect of 2022’s crypto winter continues to follow its asset management arm. The team revealed that its BCAM unit has been under intense pressure following the downfall of Celsius Network, which has plunged best-performing crypto firms into a liquidity crisis.
Therefore, these uncertainties in the crypto industry and price fluctuation compells Blockchain.com to halt the provision of value-added services and products by the BCAM team.
A report from a Blockchain.com spokesperson revealed that the BCAM unit has been operational for 11 months and was tasked to develop unique asset products to attract larger audiences from institutional investors.
Closure of Asset Management
In the report, the spokesperson blamed the macroeconomic condition and crypto market turmoil that resulted in the closure of BCAM.
Besides the unplanned shutdown of BCAM, Blockchain.com management reduced its headcount by 28% at the beginning of the previous trading year due to uncertainty in the crypto market. The Blockchain.com has joined other crypto firms closing their core units to survive the prolonged winter.
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