After a lackluster 2019, with Bitcoin (BTC) taking the spotlight and altcoins continuing to tank, the market for crypto funds seems to be dying down. The new year seems to start with the capitulation of fund-based investments, as investors start to shed their crypto-based positions.
Fund Managers Pressured for Performance Indicators
In the early days of crypto, the almost unlimited upside and fast gains put a small army of new funds on the market. High volatility and windfalls from almost any coin turned into big promises. But now, fund investors feel pressured to quit their crypto positions.
Spoke with multiple liquid crypto fund managers this week. They all have investors leaving their funds and leaving crypto altogether.
Feels like true capitulation is finally happening.
— Avichal Garg (Electric Capital) (@avichal) January 4, 2020
Fund managers are a different breed from sporadic crypto investors and enthusiasts. Unlike “hodlers” waiting for a windfall and boasting of their low time preference, they face quarterly and…