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Joe McCann is closing Asymmetric’s Liquid Alpha Fund after facing allegations of substantial losses and criticism on social media this year.
In a social media update, the crypto investor acknowledged that the Liquid Alpha Fund’s strategy “is no longer benefiting our LPs.” He explained that the fund was initially designed for high-volatility markets and had previously achieved success, but noted that Asymmetric is now transitioning to focus on long-term investments in blockchain infrastructure instead of liquid trading strategies.
This decision follows unverified online claims suggesting the liquid fund has dropped 78% this year. However, McCann countered in a separate post, stating that the Asymmetric fund “is not down 78%” and is anticipating Hyperliquid’s second airdrop, which he believes will yield “extraordinary” returns.
The move isn’t entirely unexpected, given the significant decrease in crypto market volatility over the past year, which may indicate a more mature digital assets market. The Crypto Volatility Index (CVI) has declined by nearly 30%, according to TradingView data.
Investor Withdrawal Options
Investors in the liquid fund are being given the choice to withdraw without standard lock-up restrictions or to transfer their capital into a new, illiquid investment structure. McCann stated, “Our responsibility is to adapt with discipline and prepare for future opportunities.”
He noted that the firm operates multiple investment vehicles, and while the Liquid Alpha Fund has faced challenges, other segments of the business, particularly its venture strategy, are still strong. The venture arm will continue to support early-stage blockchain initiatives.
McCann, who transitioned from technology and trading to crypto investing, described the fund’s underperformance as a test of “one’s resolve” but stressed that “the only way forward is through.”
