Remitly falls after Spruce Point discloses short position

Shares of financial services firm Remitly Global RELY.O down 1.3% at $19.81 in early trading after Spruce Point reveals short position against co

"Uncertain U.S. immigration policies and the potential deportations of millions of immigrants add notable short-term risks to its business that the Company has not yet addressed" - Spruce Point

On longer-term, Remitly faces challenges from the growing adoption of cryptocurrency such as stablecoins to facilitate payments which is likely to put pressure on its transaction fees - Spruce Point

Founded in 2011, Remitly is a Seattle-based firm that offers online remittance services

Reuters could not independently verify the claims in the short seller's report

Remitly did not immediately respond to Reuters request for comment

As of last close, stock is down 11% YTD