Hassan Maishera
Europe's largest crypto asset manager CoinShares has revealed that it is set to acquire the exchange-traded fund (ETF) business of Elwood Technologies.
Coinshares acquires ETF business for $17 million
Coinshares has announced earlier this morning that it has purchased the exchange-traded fund (ETF) business of Elwood Technologies for $17 million. The ETF business is owned by hedge fund heavyweight Alan Howard.
In a press release this morning, Coinshares said, "CoinShares International Limited, Europe's largest digital asset investment firm, today announced it had acquired the ETF index business from Elwood Technologies."
Via the platform, Elwood partnered with Invesco to launch the Invesco Elwood Global Blockchain Equity UCITS ETF. The Invesco Blockchain ETF provides exposure to internationally listed companies generating income from blockchain technology. The blockchain index has amassed over $1 billion in assets under management since it was launched in 2019.
According to Coinshares, the deal will be settled via an equity swap. Coinshares is set to issue 1,298,322 new ordinary shares at an agreed price of $13.09 per share. Furthermore, Elwood's equity research team will become Coinshares' employees.
CoinShares CEO Jean-Marie Mognetti is excited about this latest development. According to the CEO, adding the ETF index business will help Coinshares as more institutional investors seek access to cryptocurrency and blockchain-focused exchange-traded funds (ETFs). "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. We look forward to welcoming Elwood's index platform as the newest addition to the CoinShares team," he added.
The cryptocurrency firm said its partnership with Invesco is designed to bridge the gap between traditional asset management and cryptocurrencies. It will also expand both their connectivity with global institutional investors and allocators.
Coinshares is the leading cryptocurrency asset management firm in Europe. Despite recording massive success in Europe, Coinshares is looking to expand its position in the market and provide services to investors in other parts of the world.
