According to <a href="https://www.bloomberg.com/news/articles/2022-11-03/crypto-hedge-fund-investor-protocol-to-shut-after-market-slump?leadSource=uverify%20wall" target="_blank" rel="nofollow noopener">reports</a>, Protocol Ventures, a cryptocurrency fund of funds that made investments in companies including Multicoin Capital, <a href="https://www.cryptoknowmics.com/news/pantera-capital-looks-for-1-25b-to-launch-second-blockchain-fund">Pantera Capital</a>, and Electric Capital, is closing its doors. Protocol Ventures is the industry's top <a href="https://www.cryptoknowmics.com/news/bny-mellon-launches-new-digital-asset-custody-platform">digital asset</a> fund of funds, with hybrid liquidity and a venturing approach.
<h2>Protocol Ventures Closure</h2>
According to several persons who acknowledged the situation, Bloomberg broke the story on Thursday. The sources stated that the closure is anticipated for this year's final quarter or the initial quarter of next. According to reports, Protocol Ventures informed investors about the change at the end of October.

Protocol invests in an exclusive collection of <a href="https://www.cryptoknowmics.com/news/mastercard-to-assist-banks-in-providing-cryptocurrency-trading-services">cryptocurrency</a> funds based on a blend of historical and predicted performance, fund management quality, and complementing fund strategies to provide investors with diversity through a single LP investment.
<h2>Losses Upto 90%</h2>
Rick Marini, an experienced businessman, and venture investor, reportedly established Protocol Ventures in 2017 as the first cryptocurrency fund of funds. Intending to raise $100 million at the time, Marini had invested $1 million of his own money in the fund at its inception. The Bloomberg investigation claims that investors in Protocol's fund-of-funds may have suffered losses of up to 90% in the past calendar year.

The fund's shutdown coincides with the infamous cryptocurrency winter. According to data maintained by CoinGecko, the market capitalization of the cryptocurrency industry worldwide has decreased to about $1 trillion from over $3 trillion a year ago. Several cryptocurrency businesses, including <a href="https://www.cryptoknowmics.com/news/thai-securities-and-exchange-commission-accuses-zipmex-and-its-ceo">Zipmex</a>, <a href="https://www.cryptoknowmics.com/news/3ac-liquidators-seek-summons-amid-alleged-regulatory-scrutiny">Three Arrows Capital</a>, <a href="https://www.cryptoknowmics.com/news/latest-filings-of-celsius-reveal-thousands-of-customers-details">Celsius</a>, <a href="https://www.cryptoknowmics.com/news/ftx-to-acquire-voyager-assets-following-successful-auction">Voyager</a>, <a href="https://www.cryptoknowmics.com/news/indian-authorities-freeze-46-5m-worth-assets-of-vauld-exchange">Vauld</a>, <a href="https://www.cryptoknowmics.com/news/ethereum-upgrade-brings-risks-for-ailing-crypto-lender-hodlnaut">Hodlnaut</a>, and <a href="https://www.cryptoknowmics.com/news/bitcoin-miner-core-scientific-to-become-bankrupt-by-end-of-2022">Core Scientific</a>, have had financial difficulties and even declared bankruptcy.
<h2>Deribit Suffers $28M Hack and Suspended Withdrawals</h2>
Yesterday, Cryptoknowmics <a href="https://www.cryptoknowmics.com/news/crypto-exchange-deribit-suffers-28m-hack-and-suspended-withdrawals">reported</a> that Deribit, the world's biggest options exchange by market share, experienced a cyberattack that lost them $28 million. Additionally, the company ceased accepting withdrawals. The firm stated that it was performing ongoing security checks and has halted withdrawals, including those from third-party monitors Copper, Clearloop, and Cobo until it is certain that the network is stable enough to restart.

Cryptocurrency Fund-of-Funds Protocol Ventures is Closing

Protocol Ventures, a cryptocurrency fund of funds that made investments in companies including Multicoin Capital and Pantera Capital is closing its doors.

Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

Cryptocurrency Fund-of-Funds Protocol Ventures is Closing

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