By
Steve Muchoki
September 6th, 2023
Despite the layoffs, the CEO remains convinced that client funds are safe and assures the company remains strong.
Digital asset manager Osprey Funds has reportedly become the latest crypto company to lay off employees. Emerging reports from Yahoo Finance suggest that the asset manager now has less than ten employees after letting go of fifteen staff members.
Osprey Funds offers investable digital asset-based funds to institutional investors. With just 0.49% as a management fee, the company’s flagship product, the Osprey Bitcoin Trust (OBTC), is one of the lowest-cost bitcoin-focused investment funds in the US.
The company CEO, Greg King, cited the crypto market downturn as the reason for the employee layoffs. The market situation led to a crash in crypto prices and reduced interest from institutional investors. Also, an unnamed source has claimed that a failed hedge fund launch from last August is responsible for the recent layoffs at Osprey Funds.
CEO: Osprey Funds Remain Strong
Despite the layoffs, Greg King remains convinced that client funds are safe and assures the company remains strong.
As of January 9, Osprey Funds’ assets were worth just $47,829,691 under its Osprey Bitcoin Trust Ticker. Less than two years ago, when the company spun off from REX Shares, the AUM was over $150 million. This suggests a decline in institutional investments.
The asset manager also has lesser funds under management in its OTC traded trusts (Polkadot, Solana) and private trusts (Algorand, BNB Chain, and Polygon).
Who Will Be Left Standing?
Osprey Funds isn’t the only crypto company that has had to resort to laying off its employees to stay afloat. Since the summer of 2021, crypto companies have been reducing their workforce as the bear market continues.
So far in January, Genesis Global Trading and Silvergate Capital have cumulatively laid off more than 260 employees. In December, Crypto trading firm Amber Group reduced its headcount by about 300, while Bybit cut its workforce by 250. Also, Swyftx laid off 35% of its staff, cutting 90 jobs.
In November, Coinbase, Kraken, Lemon Cash, Unchained Capital, Meta Platforms, Mythical Games, Stripe, Dapper Labs, BitMEX, DCG, and Galaxy Digital, all announced staff cuts.
As it stands, no company seems immune to the effect of the crypto bear market, and no job seems safe. The question is: “Who will be left standing when the market finally reverses?”