WisdomTree, a New York-based financial investment firm, on Friday released its latest earnings report showing that the asset manager’s cryptocurrency holdings are down 36% and now stand at $178 million in Q3 as of September 30.

WisdomTree said its holdings saw a decline of $87 million (36%) in the third quarter due to the market downturn. According to the report, the company had $265 million worth of crypto assets at the end of Q2, while its holding was $178 million at the end of Q3 (July, August, and September).

The report stated that the company’s cryptocurrency holdings are now down 56% since January, from $406 million. Overall, WisdomTree said it had $70.9 billion in assets under management at the end of the third quarter of this year.

The decline in holdings reflects the drop in cryptocurrency prices and the capitalization of the global cryptocurrency market, which has declined from $2.3 trillion in January to $1.02 trillion today.

Jarrett Lilien, President and COO of WisdomTree, said that the company has not been intimidated by the market crisis, saying that the company’s focus is to bring crypto into the mainstream.

WisdomTree is one of several crypto asset managers affected by the boring and long crypto winter. A number of publicly traded crypto business firms have lost interest from investors and have faced severe downgrades from brokerage houses across the board.

The performance of these companies (such as PayPal and Coinbase, among others) has been very disappointing, with some (such as BlockFi and others) recently announcing headcount reductions, while others (such as Voyager Digital, Celsius Network, Arrow Three Capital and others) announced bankruptcy protections.

A steady rise in crypto investment product outflows since the collapse of TerraUSD has raised concerns about the survival and sustainability of many crypto asset management firms.

While the market downturn has made it difficult for small crypto funds to survive, it has created an opportunity for major players in the asset management sector to reconsider their risk management strategies.

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