It is reported that demand and profits are “drying up” at many of the more than 150 funds that appeared during the recent surge in bitcoin which attracted various investors. Meanwhile, at about $7,000, the currency is at its lowest since November.
According to Lex Sokolin, global director of fintech strategy at Autonomous Research LLP, about 10% of all crypto funds could close by December 2018. Rick Marini, co-founder of Protocol Ventures, states that only 50 funds will we able to attract enough outside capital to be sustainable and serve institutional investors.
“We are going to see it by the end of this year. People are able to leverage good returns last year to try to raise money this year, but this year is going to be different.”
– Rick Marini