Wall Street

Crypto hedge fund shutdowns are leading to layoffs in the OTC world

Quick Take

  • OTC desks are running into headwinds as hedge funds shut
  • CMT Digital has laid off people in its trading unit, whereas Kenetic Capital has shut its OTC desk

Crypto winter has finally found its way to a corner of the digital asset market known for its high margins: over-the-counter trading. 

In recent weeks, two over-the-counter trading operations have run into significant headwinds — with one firm shutting its desk altogether. 

CMT Digital, a Chicago-based firm, has laid off more than 10 individuals from their team, according to several people.