PANews reported on June 29 that according to Cointelegraph, only a few Bitcoin fund management companies can stand the test of time and avoid falling into a vicious "death spiral" according to a report by venture capital firm Breed. This spiral will affect BTC holding companies whose trading prices are close to net asset value (NAV, which is the total assets of a corporate entity minus its liabilities). The report wrote that the health of Bitcoin fund management companies depends on whether they can control multiples of net asset value (MNAV).

Breed’s report outlines seven stages of the decline of BTC money management firms, starting with a fall in Bitcoin prices, triggering a decline in MNAV, bringing the firm’s share price closer to its actual net asset value. This in turn makes it more difficult for BTC holding firms to obtain debt and equity financing, which are critical to the asymmetric trade of converting inflationary dollars into appreciating assets with limited supply. As credit channels dry up and debt maturities loom, margin calls are triggered, forcing these firms to dump Bitcoin on the market, further depressing the price of Bitcoin, leading to the holding company’s acquisition by a stronger firm, and potentially triggering a prolonged market downturn.

"Ultimately, only a select few will be able to sustain a durable price-to-book premium. They will earn that premium through strong leadership, disciplined execution, savvy marketing, and a unique strategy that consistently drives the price of Bitcoin per share higher regardless of market volatility." This death spiral could trigger the next cryptocurrency bear market. However, the report said that since most Bitcoin money managers currently finance their purchases with equity rather than debt, this implosion could be contained.