CoinShares is a pioneer in many areas
CoinShares Management Understands Volatility
Expanding the range of products and services
Impressive growth in 2021
An attractive takeover candidate
Cryptocurrencies remain a relatively new, developing asset class. The incredible growth in the value of digital currencies has made them a mainstream phenomenon in recent years. More and more investors are trying their hand at this market, and in search of guidance, they turn to the pioneers of the crypto space.
CoinShares International (ST:CS) is a service provider for investors that also issues its own cryptocurrency. The company develops infrastructure, as well as financial products and services in the field of cryptocurrencies, expanding access to this ecosystem.
Cryptocurrencies were born in 2010 after the publication of the Bitcoin white Paper by Satoshi Nakamoto in 2008. CoinShares has been operating since 2014, when it launched its first investment fund.
CoinChares is not as widely known as the cryptocurrency price monitoring site CoinMarketCap, the Coinbase crypto exchange and other leading exchanges and service providers. The company is listed in Sweden; its main offices are located on the island of Jersey and in the UK.
CoinShares is a pioneer in many areas
According to the official website, CoinShares creates products and services to meet the needs of customers (both retail and institutional) in the field of digital assets. In the course of popularization of cryptocurrencies and other digital assets, this company was the first in the industry to release a number of products:
the first regulated hedge fund for bitcoin;
the first exchange-traded Bitcoin ETP product;
the first private fund in the ether, the Ethereum cryptocurrency;
the first ETP on the air.
CoinShares has also made Litecoin and XRP ETP available to investors in the EU.
The company recently increased its stake in the Swiss banking company FlowBank, investing $26.50 million in it. FlowBank offers its customers a wide range of products, including crypto assets. CoinShares now owns 29.3% of FlowBank shares with 32% of voting rights.
Last July, CoinShares acquired the index ETFs business from Elwood Technologies for $17 million, the transaction was paid for by shares. In December 2021, CoinShares acquired the French supplier of investment crypto products Napoleon Crypto SAS for $15.7 million.
Thus, through acquisitions, CoinShares turns into an integrated fintech company specializing in digital assets.
CoinShares Management Understands Volatility
The chairman of CoinShares is Daniel Masters. He previously headed the oil trading department at J.P. Morgan and worked at Phinbro under Andy Hall. I was a colleague of Masters at Phinbro, and also worked with him for a short time at his Global Advisors hedge fund.
Masters switched from volatile energy markets to cryptocurrencies, having seen the potential of this growing asset class long before many other specialists.
His experience with volatile commodities has prepared him for the crazy price fluctuations inherent in cryptocurrencies. Masters understands that volatility creates opportunities for investors and market participants. He believes that the emergence of blockchain means the decline of traditional commercial banks. Here ‘s what he said in a 2020 interview with Forbes:
“There are so many brilliant innovative solutions coming out now. Borrowing and lending today can be carried out transparently, remotely and in self-management mode in the blockchain. This is much better than doing all this with Citigroup. And it really deserves attention.”
Expanding the range of products and services
CoinShares is at the forefront of the digital asset industry, which is gradually moving into the mainstream. The company continues to expand its range of products and services. The new directions, among other things, include:
ETP in Europe;
e-commerce and liquidity and risk management systems for capital markets;
individual selection of “active” strategies for accredited investors;
index strategies;
consulting services, including private placements in the digital industry.
Coinbase (NASDAQ:COIN) and Binance are cryptocurrency platforms. CoinShares is a European boutique investment bank focused on digital assets and growing through an aggressive M&A strategy.
Impressive growth in 2021
In 2021, CoinShares has shown impressive growth.
An attractive takeover candidate
The path of CoinShares began with one bitcoin fund. Now it is an integrated investment bank offering a comprehensive range of products and services in the field of digital assets. The growth strategy allowed the company to increase profits.
As cryptocurrencies developed, CoinShares remained one step ahead of traditional financial companies. It makes sense to keep an eye on CoinShares, as it may turn out to be an attractive takeover candidate for the world’s leading investment banks. Access to capital for this established business with a solid track record makes it an attractive M&A target.
