European digital asset investment firm CoinShares has bought an ETF index business that helps power blockchain-exposed trackers for global fund managers such as Invesco.
The business from Elwood Technologies operates the Invesco Blockchain ETF, which has accrued more than $1bn in assets since its inception in 2019. The equity research unit of Elwood, which is backed by crypto investor and billionaire Alan Howard, will also join CoinShares as part of the transaction.
CoinShares said on 6 July its new collaboration with the $1.5bn global asset manager will further its connectivity to institutional investors, after it launched bitcoin and ether-focused ETFs earlier this year.
Gary Buxton, head of ETFs for Europe, the Middle East and Africa at Invesco, said the popularity of the Elwood ETF “is a testament to the [blockchain] sector’s momentum and the compelling opportunities for investors”.
“We believe that blockchain technology and crypto assets will continue to evolve and play an increasingly significant, mainstream role across business, finance and society,” Buxton said. “We have enjoyed our three-year collaboration with Elwood and are looking forward to building on this partnership with CoinShares.”
CoinShares chief executive Jean-Marie Mognetti said Elwood and Invesco are “natural partners” for the firm, with the purchase of Elwood’s ETF business forming part of its plan to grow the wider group.
CoinShares reported £17.1m in revenue from its exchange traded products in the first quarter, with plans to expand the business further.
The deal is to be settled via an equity swap, through the issuance of approximately 1.3 million new shares at a price of $13.09 per share — or $17m. The transaction is expected to complete next week upon admission of the new shares to trading in the US, where CoinShares is listed.
“This acquisition marks another milestone for CoinShares as we execute on our strategic plan to generate shareholder value,” said Mognetti in a 6 July statement.
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