BlockTower Capital Closes “Market Neutral” Cryptocurrency Fund

According to reports, BlockTower Capital, a digital asset investment company headquartered in Miami, announced the closure of its “market neutral” cryptocurrency fund, which once managed over $100 million in funds. Matthew Goetz, CEO of BlockTower Capital, stated that the venture capital company had already made a decision to close the fund in early 2023 and would return the funds to relevant investors, seeking other investment strategies such as “Real World Assets (RWAs)” in the future.

BlockTower Capital: Will close “market neutral” crypto funds and return funds to investors

BlockTower Capital, a digital asset investment company headquartered in Miami, has announced the closure of its “market neutral” cryptocurrency fund, which once managed over $100 million in funds. Matthew Goetz, CEO of BlockTower Capital, stated that the venture capital company had already made a decision to close the fund in early 2023 and would return the funds to relevant investors, seeking other investment strategies such as “Real World Assets (RWAs)” in the future.

Introduction

The decision made by BlockTower Capital to close its “market neutral” cryptocurrency fund has come as a surprise to many. The fund, which once managed over $100 million in assets, was seen as a significant player in the cryptocurrency investment space.
In this article, we will explore the reasons behind BlockTower Capital’s decision to close the fund and what this means for the cryptocurrency market moving forward.

About BlockTower Capital

BlockTower Capital is a digital asset investment company that was founded in 2017. The company’s focus is on providing investment strategies for the cryptocurrency market, with a particular emphasis on Bitcoin and other altcoins.
The “market neutral” cryptocurrency fund was one of the company’s main offerings, and it was designed to provide investors with a way to invest in cryptocurrency without being affected by the volatility of the market.

The Closure of the Fund

According to Matthew Goetz, CEO of BlockTower Capital, the decision to close the “market neutral” cryptocurrency fund was made in early 2023. Goetz stated that the company had already started returning the funds to relevant investors.
The reason behind the closure of the fund is not entirely clear, but it is likely that it was due to a lack of profitability. The cryptocurrency market is notoriously volatile, and even experienced investors can struggle to make money in this space.

Real World Assets (RWAs)

In the future, BlockTower Capital has stated that it will be exploring other investment strategies, such as “Real World Assets (RWAs)”. This approach involves investing in assets that are backed by physical assets, such as real estate or commodities.
The advantage of investing in RWAs is that they are typically less volatile than cryptocurrencies. This makes them a more attractive option for investors who are looking for stability in their investments.

The Impact on the Cryptocurrency Market

The closure of BlockTower Capital’s “market neutral” cryptocurrency fund is unlikely to have a significant impact on the cryptocurrency market as a whole. However, it does highlight the challenges that investors face when investing in this space.
It is worth noting that there are many other cryptocurrency investment funds available, and investors who are looking for exposure to this market will still have plenty of options.

Conclusion

BlockTower Capital’s decision to close its “market neutral” cryptocurrency fund is a reminder that even experienced investors can struggle to make money in the world of cryptocurrency. However, the company’s decision to explore other investment strategies, such as RWAs, shows that there are still opportunities for investors in this space.
Overall, the closure of the fund is unlikely to have a significant impact on the cryptocurrency market as a whole, but it is an interesting development that is worth keeping an eye on.

FAQs

1. Why did BlockTower Capital decide to close its “market neutral” cryptocurrency fund?
A: The reason for the closure of the fund is not entirely clear, but it is likely due to a lack of profitability.
2. What are Real World Assets (RWAs)?
A: Real World Assets are investments that are backed by physical assets, such as real estate or commodities.
3. Will BlockTower Capital be exploring other investment strategies in the future?
A: Yes, BlockTower Capital has stated that it will be exploring other investment strategies, such as RWAs, in the future.