2 partners exit MetaStable as deal-flow pipeline shrinks

Two partners at California crypto hedge fund MetaStable have left the firm as the so-called "crypto winter" continues to grip the industry. 

In an external email, MetaStable announced the exits of Haseeb Qureshi and Ivan Bogatyy, both general partners at the firm. They are exploring new opportunities, according to a source. MetaStable, one of the earliest funds in the digital asset and bitcoin market, is known for its eye-popping returns, delivering 999 percent a year since its inception in 2014. As noted by Fortune's Jen Wieczner in July 2017, the firm counts Andreessen Horowitz, Union Square Ventures, and Bessemer as investors. At the time of the Fortune report, the firm had invested in Bitcoin, Ethereum and Monero. 

Founded by former AngelList CEO Naval Ravikant, the firm is lean, according to a source familiar with its operations. "MetaStable is a small, closely held team, that operates with a healthy perspective and a healthy dose of skepticism."

Furthermore, the fund has witnessed a decrease in deal flow since Qureshi, a former poker champion, and Bogatyy joined the company last year, according to the email. 

It's been a tough market for crypto hedge funds. One over-the-counter trading source told The Block that a number of hedge fund counterparties have "fallen off." Many funds have shifted to a venture capital model to stay afloat. There are some bright spots, to be sure. A number of new funds have launched in recent months including DARMA, an ether-focused fund, as well as a new activist hedge fund backed by Peter Thiel. Recently Arca Funds, a California-based crypto fund, began accepting outside money.

Bogatyy was previously a software engineer at Google and Yandex. He graduated from Stanford University in 2017 after studying in Russia. As for Qureshi, the former poker player permanently retired from the game at 21. Previously, he was a consultant at Earn.com as well as a software engineer at Airbnb. 

We've reached out to MetaStable and will update this post if the firm responds to our inquiry.