Hedge Funds Battle to Survive After FTX Exchange Collapse

Some Hedge Funds had the Option to Weather the Storm and Remain Solvent Despite being Unfavorably Impacted by the Disappointment of the FTX Exchange, While others were Forced to Settle on the Choice to liquidate their Holdings and Cease Operations because of the Financial Emergency.

CoinShares, An Institutional Crypto Fund Manager, underlined the fact that the company Remained “Financially Solid” in its final quarter report for 2022. This was despite the fact that the company needed to cope with the FTX Crash at the end of the year. The fund also showed its triumphs, including its graduation to the Chief Market of Nasdaq Stockholm and its high levels of inflow into CoinShares actual Exchange traded goods.

Following the Filing of its Bankruptcy Request, CoinShares said that Assets worth more than $31 million were Frozen on the FTX Exchange. The Management of the Fund doesn’t know for Certain if they will ever have the Option to recover the monies or the amount of the assets can be Recovered at this time.
Over the Span of the quarter, the Company Reached the conclusion that it would never again maintain its CoinShares Consumer platform. The Company Explained its decision in writing, stating that “Market conditions brought forth a situation that didn’t enable us, with our present Financial Design, to Support a Consumer Activity that required huge Upfront Expenditure in marketing.”

The Chief Executive Officer of CoinShares, Jean-Marie Mognetti, said in a letter to investors that the disappointment of FTX “made a substantial difference” on the Company’s Capacity to implement its algorithmic trading platform, HAL, in European markets. Despite this, Mognetti also noted that the Company will continue into 2023 with characterized targets, for Example, Concentrating on Increasing its Digital Asset Management business and the Institutional products it provides.

Galois Capital, A Hedge Fund, didn’t have the same level of progress as CoinShares when it came to weathering the FTX Storm. The Fund Declared to its Investors on February 20 that it would be unwinding its operations due to the losses that it supported because of the collapse of FTX. The Company went with the Executive Choice to return the Remainder of its cash to its investors and to sell claims to purchasers were better prepared to seek after Bankruptcy Claims.