CoinShares Acquires ETF Index Business
- CoinShares will acquire Elwood’s entire issued capital for $17 million.
- Elwood’s equity research team will join CoinShares, but not changes will be implemented to the Elwood Index or the Invesco Blockchain ETF.
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According to a press release published on 6 July, CoinShares has acquired an ETF index business, which was a joint project between Elwood Technologies and Invesco created to provide exposure to internationally listed companies generating earnings from blockchain technologies. The Invesco Blockchain ETF has amassed over $1 billion in assets since 2019.
Alongside the index, Elwood launched an equity research team focused on companies in the digital assets space. The equity research unit will join CoinShares following the acquisition, but there will be no changes to the Elwood Index and no impact on the Invesco Blockchain ETF.
CoinShares will acquire the entire issued capital in Elwood Asset Management Services for $17 million. The transaction will settle via equity swap through the issuance of new shares and is expected to settle in the second week of July.
Jean-Marie Mognetti, the CEO of CoinShares, said that Elwood Index and Invesco have presented themselves as perfect partners to CoinShares as its investors began seeking more exposure to cryptocurrencies and blockchain technology.
“This acquisition marks another milestone for CoinShares as we execute on our strategic plan to generate shareholder value and become a global financial technology company,” she said in the company’s press release.
CoinShares reported $23.7 million in revenues from its digital asset ETP business in Q1. The company recently launched Bitcoin, Ethereum, and Litecoin ETPs, which have all been listed on Deutsche Börse.
- During the opening of Hong Kong’s FinTech Week, the city government revealed it was considering ways to give retail investors a “suitable degree of access” to crypto trading.
- Hong Kong will also introduce a new licensing regime for virtual asset service providers, and has invited them to set foot in the city for new business opportunities.
Hong Kong national flag. Neerav Bhatt/Flickr
- Napoleon Asset Management was amongst the first to be licensed under AIMF, giving it passporting permission to market products and services across the EU.
- The acquisition will also expand CoinShares’ products with algorithmic trading and artificial intelligence tools developed by Napoleon.
- Europe’s largest digital asset investment firm has become the latest member of the Pyth Network.
- CoinShares will contribute real-time pricing data to the network, eliminating the need for intermediaries.