Asymmetric Closes Liquid Alpha, Shifts to Blockchain
Asymmetric, a leading crypto hedge fund, has closed its Liquid Alpha Fund after substantial losses. The Liquid Alpha Fund suffered a $10 million drawdown, slashing investor portfolios by 78% in the first half of the year. Founder Joe McCann attributed the setback to market consolidation, regulatory uncertainty and competition from high-frequency trading.
The firm will pivot from liquidity trading to long-term blockchain infrastructure investments. The new strategy targets layer-1 networks such as ETH, SOL and AVAX; layer-2 scaling solutions ARB and OP; DeFi protocols; Web3 development tools; plus security and auditing services.
This shift reflects a broader industry trend prioritizing foundational projects over short-term token speculation. Traders should watch infrastructure token performance and reassess risk models. Asymmetric’s move may prompt other crypto investment firms to rebalance strategies and deploy patient capital to capture sustainable growth.
Bullish
The closure of the Liquid Alpha Fund underscores the limits of liquidity trading in volatile markets and signals Asymmetric’s reallocation of capital toward blockchain infrastructure. This pivot will likely redirect funds into layer-1 and layer-2 tokens, boosting demand for ETH, SOL, AVAX, ARB and OP. In the short term, liquidity trading volumes may decline, reducing volatility in these assets. Over the long term, sustained investments could underpin token prices and foster market confidence. Therefore, the news is bullish for infrastructure tokens.