It was reported earlier this week by Bloomberg that private investment fund Falcon Global Capital had closed its bitcoin fund due to the digital currency’s slowing demand.
While the fund has indeed ceased, Falcon CEO Brett Stapper is claiming that demand had little to do with the decision, and that it was rather a planned move following Falcon customers’ lagging eagerness to have their bitcoins managed by a third party, and that closing the fund gives Falcon the opportunity to place more focus and attention on their latest consulting service which has experienced rising popularity since its integration just last month.
Stapper explained the company’s current situation and the insignificance of the bitcoin fund, saying:
“In terms of our operations, [the fund closure] changes nothing. We’re talking about the same things with the same clients… The only difference is that instead of us being responsible for the transactions, they handle that on their own. We’re confident that there’s enough companies in the space right now to help with that.”
Stapper also believes that many of his clients are looking to better understand bitcoin before they make any set investments, and that managed bitcoin funds are not likely to become the next big trend:
“I think there’s still a market, I just think it’s going to become smaller and smaller as time goes on… When you’re teaching somebody about bitcoin the first time and what it enables you to do, to maintain your own assets, maintain your own cash, it’s easy to explain to them. It defeats the purpose of bitcoin to have others manage your money.”