The closure of Joe McCann's fund highlights challenging conditions in the liquid token market despite an overall rise in digital asset prices. Facing difficulties, the fund ceases operations amid increasing interest in ETFs.
Challenges Facing Liquid Funds in 2025
Against the backdrop of the bullish 2025 market, liquid crypto funds are underperforming. Structural issues and liquidity concerns are hindering growth, despite positive price trends for cryptocurrencies like Bitcoin and large-cap tokens.
Institutional Investors Shift to ETFs
The fund's closure reflects broader industry challenges. Institutional capital now favors ETFs over traditional liquid funds, altering market dynamics. Political and regulatory shifts have led to increased compliance measures for funds.
Altcoins Struggle with Liquidity Issues
Past bullish cycles showed altcoins rallying after Bitcoin's surges. However, 2025 mirrors trends from 2020–2021, where new inflows revived altcoin markets. Experts suggest that further ETF growth may compress traditional fund strategies.
Joe McCann's fund closure reflects the ongoing difficulties in the liquid fund industry, pointing to shifts in institutional investor preferences and the impact of ETFs on the market.
