Blockchain.com, one of the major Bitcoin exchanges, is going to shrink. According to a Bloomberg report, crypto financial services company Blockchain.com is suspending the activities of its recently launched asset management arm, citing the prolonged crypto winter as the reason for its decision. However, the termination of the service will not affect individual users of the company.
Bitcoin exchange Blockchain.com to shut down its subsidiary
According to a March 9 report from Bloomberg, Blockchain.com, one of the major Bitcoin exchanges, will end its asset management arm in less than a year. Blockchain.com offers an investment strategy that tracks the price of Bitcoin against the dollar through its asset management section. It also planned to offer ‘algorithm-based risk-managed exposure’ to Bitcoin, according to Bloomberg reports.
Meanwhile, Blockchain.com has yet to officially announce the decision. However, the subsidiary has applied to be removed from the register of UK companies in a filing. This filing, dated March 6, is currently open for public review. Therefore, it is clear that there is a development in this direction. The company, which will inform the creditors more broadly of the closure of the subsidiary, will make its first public announcement regarding the voluntary closure on 14 March.
Blockchain.com Asset Management, or BCAM, was launched in April 2022 with the aim of attracting institutional investors. Shortly after, the crypto industry entered a difficult period with asset prices plummeting following the bankruptcy of crypto lender Celsius Network and continued with the decline of many other leading crypto firms.
Asset management arm took less than a year
Blockchain.com’s ephemeral asset management service went live just 11 months ago. Blockchain.com had a strong performance last year. It has just completed a fundraising event that allowed it to reach a valuation of $14 billion, although it is currently only worth $3 to $4 billion. This growth allowed it to launch its asset management service in April 2022. A spokesperson told Bloomberg:
Blockchain.com Asset Management was launched in April 2022, shortly before macroeconomic conditions deteriorated rapidly. With crypto winter approaching a leap year, we have made the decision to stop operating this enterprise product.
The decision is just one of Blockchain.com’s recent downsizing strategies. As cryptokoin.com reported, the Bitcoin exchange laid off about 28% of its workforce in January after previous layoffs in July 2022.
The decision will not affect most users
The decision does not seem to affect individual users of Blockchain.com. Blockchain.com offers a medium-sized crypto exchange with trading volume of $3.2 million in the last 24 hours, according to data from Coinecko. The company also provides a variety of services, including a cryptocurrency wallet, on-chain data explorer, and various corporate services. The company operates in the UK but serves users in multiple locations.
60464
