CRYPTO LIQUID FUNDS ARE DOWN BAD — AND SHIFTING TO QUALITY TOKENS

Summary from the TLDR Crypto newsletter

Crypto liquid funds incurred losses up to 70% in Q1 2025, driven by macro turmoil and heavy altcoin exposure. Fund managers focusing on smaller, high-conviction positions based on fundamentals rather than momentum are narrowing portfolios to six to ten quality tokens and are exploring crypto-exposed equities. The shift coincides with anticipations of clearer US regulation, new liquid vehicles launching, and venture firms adopting flexible mandates to capitalize on token market mini-cycles.