Digital Asset Manager CoinShares to Acquire Alan Howard’s ETF Index for $17 Million

3 months ago

Coinshares has purchased Alan Howard’s Elwood Blockchain ETF index for $17 million. The fund has over $1 billion in AUM. 

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European digital asset manager, CoinShares International Limited, has recently announced that it will be acquiring Elwood Technologies’ Exchange-traded Fund (ETF) index business for $17 million.

In an official blog post, CoinShares revealed that the deal will be finalized in the second week of July and will settle via an equity swap, through the issuance of 1,298,322 new ordinary shares for $13.09 per share.

$1 Billion in AUM

Elwood Technologies is owned by Alan Howard, the billionaire hedge fund manager and co-founder of Brevan Howard Asset Management.

The company had launched its Blockchain ETF in partnership with Invesco Ltd. Over the two years since its creation, the fund invests in companies that are developing blockchain technology and has now accumulated more than $1 billion in assets under management (AUM).

As per the announcement, the digital asset-focused equity research team at Elwood will join CoinShares and focus on crypto and blockchain-related stocks as part of the deal. However, the acquisition will not impact the Elwood Index and the Invesco Blockchain ETF.

The deal is geared toward bridging the gap between crypto-assets and traditional asset management, enabling institutions like banks and asset managers to effectively trade crypto across exchanges globally.

Speaking on the acquisition, CoinShares CEO, Jean-Marie Mognetti said, “As the popularity of thematic ETFs continues to grow, we have seen notable performance dispersion between strategies targeting similar exposures…

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.”

Crypto Assets Will Continue to Evolve

Invesco EMEA ETFs head, Gary Buxton believes crypto assets and blockchain technology will “continue to evolve and play an increasingly significant, mainstream role across business, finance, and society.”

Buxton further noted that the success of Elwood’s ETF is proof of the sector’s momentum and the compelling opportunities for investors.

While exchange-traded crypto products exist in Europe and a recent Bitcoin ETF received approval in Canada, financial regulators in the U.S. have consistently refused to allow their launch in the country.

Despite the growing customer demand for ETFs, the regulators are still hesitant to greenlight them, coating several regulatory concerns.

Just a few weeks ago, giant asset manager, VanEck urged the US SEC to approve a Bitcoin ETF.

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