Osprey Funds, a crypto asset management firm, has reportedly laid off most of its staff since the summer of 2022, underlining the ongoing operational challenges posed by the permanent cryptocurrency bear market.
According to Yahoo Finance, Osprey Funds currently operates with fewer than 10 employees, after laying off 15 employees since the summer. CEO Greg Kling told the publication that the layoffs were consistent with a market downturn and that the company was not in danger of closing operations.
Osprey Funds provides accredited investors with access to cryptocurrency-focused investment products, including a Bitcoin (BTC) fund that can be purchased within brokerage accounts, Cointelegraph reported.
Institutional appetite for cryptocurrency products has diminished significantly over the past year, reflecting weak demand for riskier assets in the wake of tightening liquidity conditions around the world. 2022 was the worst year in over a decade for global stocks and bonds, so it wasn't just cryptocurrencies that were affected.
However, there are some positive signs that institutional investors are turning to cryptocurrencies again. A survey sponsored by Coinbase conducted between September 21 and October 27 found that 62% of institutional investors have increased their exposure to digital assets over the past 12 months.
