Brazilian manager KPTL, which managed three cryptocurrency funds, announced last Monday (10) the closure of its offerings in the market, following 2023 losses and regulatory uncertainty.
According to information published by NeoFeed, the bankruptcy of US banks, such as Silicon Valley Bank, contributed to the decision. In addition, the end of FTX, in November 2022, weighed on the company’s assessment of the market.
One of the funds to close is Bohr Arbitrage Crypto, which posted losses in 2023 and underperformed the S&P 500 compared to the S&P 500.

Three cryptocurrency investment funds will be closed after declining investor interest, the Brazilian manager says
In addition to the “Bohr Arbitrage Crypto”, KPTL manages the “Appia Long/Short Fund” and the “Lupa Web3 Fund”. The latter was a fund more focused on investments in DeFi, NFTs, metaverse, among others, sectors that suffered from the decline in investor interest in recent months.
“Appia”, a quant fund, worked exclusively with Binance and only traded on this exchange in its trades.
After announcing that the three cryptocurrency-related funds are not expected to continue, the Brazilian manager stated that she will return capital from investors. In a note, KPTL says there is liquidity to repay all amounts to customers.
KPTL’s CEO says the lack of a banking partner has weighed on it
In an interview last Monday, Renato Ramalho, CEO of KPTL, said there is no longer a banking partner available to carry out the fund’s operations.
According to him, in order to follow the fund’s regulations, he must conduct operations with derivatives. Without a bank partner, the option becomes impossible and the lack of a bank ends the fund’s possibilities.
He understands that regulators still do not understand the cryptocurrency market, i.e. they are pressuring the industry with strict regulations. In addition, he understands that the bankruptcy of FTX did not help at all, as it weakened the financial system.
Going forward, the Brazilian manager does not rule out returning to the market with international cryptocurrency funds. In Brazil, however, given the macroeconomic scenario, the CEO of KPTL does not believe that the company will return to operations in the short term.
While moving away from cryptocurrencies, the company is focusing on the CVC market and recently signed an agreement with Banco de Brasília. So it has to manage a fund of BRL 50 million to invest in 8 to 12 startups. The manager will continue to operate with other products and claims to have more than $1 billion in custody.
Source: Live Coins

Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.