CoinShares revenue surges 110% in Q2, driven by FTX claim sale

With the help of its FTX claim sale, CoinShares saw its revenue rise 110% in the second quarter of 2024.
With the help of its FTX claim sale, CoinShares saw its revenue rise 110% in the second quarter of 2024.

European asset manager CoinShares has seen a 110% increase in its revenue for the second quarter of 2024, backed in part by its FTX claim sale. 

According to CoinShares’ Aug. 6 earnings report, company revenue for the quarter rose to 22.5 million pounds ($28.5 million) from 10.7 million pounds ($13.5 million) in the same period of 2023, representing a 110% growth rate year over year.

CoinShares’ claim on FTX bankruptcy proceedings netted the asset manager a 116% yield to a return of 31.32 million pounds ($39.78 million). At the time of the exchange’s collapse, the claim stood at 26.6 million pounds ($33.78 million).

Conversely, in June, the company wrote down its investment in the online bank FlowBank Holdings SA after the Swiss Financial Market Supervisory Authority (FINMA) declared it bankrupt. CoinShares decided to fully impair its stake in the bank, resulting in a loss of 21.8 million pounds ($27.6 million). “For the time being, as we did with our FTX assets back in 2022, we have elected to impair this holding in full,” notes the report.

According to CoinShares, these developments, along with its portfolio, have led to an adjusted EBITDA of 26.6 million pounds ($33.7 million) in the second quarter, bringing the year-to-date total to 60.8 million ($77.2 million). The figures represent a 133% increase year over year and a 235% growth year to date compared to the same period last year.

In addition, CoinShares disclosed one of its best quarters in terms of net flows since 2021, with $67 million in inflows through its European physical exchange-traded products (ETPs). The funds offer exposure to cryptocurrencies backed by physical assets, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and other staked coins such as Solana (SOL).

CoinShares' digital assets performance. Source: CoinShares

“The CoinShares Physical Bitcoin ETP captured $55 million of inflows, the highest among all Bitcoin ETPs in Europe in Q2,” the company stated. On the other hand, its Physical Staked Ethereum ETP experienced $15 million in outflows, “a trend seen across most ETP issuers in Europe.”

CoinShares’ spot Bitcoin ETP, recently acquired from Valkyrie Funds, raised an additional $44 million in the quarter. “Although this is lower than the inflows experienced in Q1, it aligns with the overall slowdown observed across the whole industry.” The company exercised an option to acquire Valkyrie Funds on Jan. 12, following the United States Securities and Exchange Commission’s approval of spot Bitcoin exchange-traded funds.

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