Valkyrie Investments, among the first companies to issue a bitcoin futures ETF, has cut 30% of its workforce in recent months amid tumbling prices for digital currencies, according to news reports.
The Nashville-based company reduced its headcount to 16 over recent months, according to Blockworks, which cited an interview with CEO Leah Wald.
The cuts come during one of the worst stretches for digital currencies. Investors are increasingly skeptical about cryptocurrencies thanks to falling prices, the collapse of bitcoin exchange FTX and lack of support from U.S. regulators.
Valkyrie has struggled, losing nearly half of an $11.2 million fundraising round when participant CSA Evolution VC Fund backed out. That fund had committed $5 million, the company said in a statement last month. At the time, Valkyrie said a handful of investors may be available to replace the funds.
The Valkyrie Bitcoin Strategy ETF (BTF), which invests in CME bitcoin futures, has lost three-quarters of its value over the past year, dropping to $18.2 million and far outpacing declines in the S&P 500 and Nasdaq.
While set up as a bitcoin fund when it launched in October 2021, the fund’s description page shows that U.S. Treasury bills are its top holding. It declined 2.6% to $6.26 on Wednesday.
Valkyrie officials weren’t immediately available for comment.
The company also manages the Valkyrie Bitcoin Miners ETF (WGMI), which invests in bitcoin mining firms. Its assets under management have slipped to $2.19 million, and the fund’s share price has fallen 57% over the past three months to $6.30.
Contact Ron Day at [email protected]