Blockchain.com, a crypto financial services company, is suspending operations of its recently launched asset management arm, citing the prolonged crypto winter as the reason for its decision, according to a Bloomberg report.
Blockchain.com Asset Management, or BCAM, was started in April 2022 in an effort to attract institutional investors. Shortly after, the crypto industry hit a rough patch, with asset prices falling rapidly following the bankruptcy of crypto lender Celsius Network, and continuing with the fall of multiple other prominent crypto firms.
“Blockchain.com Asset Management launched in April 2022, shortly before macroeconomic conditions deteriorated rapidly. With crypto winter now approaching the one-year mark, we made the business decision to pause operating this institutional product,” a spokesperson told Bloomberg.
In January, the Cayman Islands-headquartered firm said it was letting go 28% of its workforce due to the challenges the crypto ecosystem faced in 2022.