Popular Crypto Exchange Announces It Will Close Its Asset Management Arm

Cryptocurrency exchange Blockchain.com announced that it is suspending the operations of its asset management arm, 11 months after its launch.

Subsidiary of Cryptocurrency Exchange Blockchain.com Launched Last Year

The company took its first step into wealth management for institutional clients last year, a week after it launched a $14 billion funding round.

The London-based subsidiary applied to be delisted from UK companies on Monday, according to a filing. Blockchain.com Asset Management, also known as BCAM, has not yet submitted any annual reports.

A spokesperson said:

“Blockchain.com Asset Management launched in April 2022, shortly before macroeconomic conditions deteriorated rapidly. As crypto winter approaches the leap year mark, we have made the decision to cease operating this enterprise product.”

BCAM launched last year with a strategy that tracks the price of Bitcoin against the dollar, according to Chief Strategy Officer Charlie McGarraugh. McGarraugh told Bloomberg at the time that the asset manager plans to introduce a product that manages “algorithm-based risk-managed exposure” to Bitcoin and token exposure in decentralized finance.

bitcoin Crypto companies, including blockchain.com, have collectively laid off thousands of people since the start of the year.

Blockchain.com announced in January that it plans to lay off about 28% of its workforce, or about 110 employees. It also laid off about 150 staff last year following the collapse of bankrupt crypto hedge fund Three Arrows Capital, a client of the platform.

*Not investment advice.