The digital asset markets crash has claimed another victim with Protocol Ventures LP, a US-based investor in crypto hedge funds, announcing its intention to close down and return cash to investors, according to a report by the Malaysian Reserve.

The report cites unnamed sources as revealing that notices were sent to investors at the end of October about the decision, with the closure expected to be completed by the end of the year or in the first quarter of 2023.

Investors in Protocol’s fund of crypto hedge funds have reportedly lost as much as 90% over the past year with the fund having invested in the likes of BlockTower Capital, Multicoin Capital, Pantera and Electric Capital. 

Protocol’s decision to wind down comes with the digital-asset sector still adjusting to a US$2 trillion rout over the past year. The Bloomberg Cryptocurrency Hedge Fund Index is down 45% this year, compared to a 9% decline in the Bloomberg All Hedge Fund Index.