Europe’s leading digital asset manager CoinShares has surpassed the $1 billion mark in assets under management (AUM) for its exchange-traded fund (ETF) product. The UK-based CoinShares is an established firm that offers investors easy access to Bitcoin and crypto fund manager using their existing broker or platform.
The high valuation is a direct impact of the increasing adoption of cryptocurrencies in the last six months. Furthermore, the entry of institutional investors, financial services firms, and investment banks in the crypto sector has seen an increased uptake of digital assets among investors. At the same time, under the CoinShares ecosystem, there has also been an accelerated growth of assets under management.
Speaking on the milestone, CoinShares Chief Revenue Officer, Frank Spiteri, stated that the firm has seen an increase from institutional investors seeking to know how they can fit cryptocurrencies in their portfolio. He notes that traditional banks are attempting to meet the needs of their clients:
“Bitcoin and other digital assets continue to fascinate and intrigue investors. As the investment environment changes and the need for alternative stores of value rises, an ever-increasing number of institutional investors are contacting us to discuss how digital assets can fit within a portfolio. Traditional banks, brokerages, and asset managers are responding to the needs of their clients, and their clients want bitcoin.”
Bitcoin’s inclusion in portfolio management
On the other hand, CoinShares CEO Jean-Marie Mognetti stated the valuation serves a bigger purpose since it proves that Bitcoin and other digital currencies play a vital role in managing portfolios. He notes that Bitcoin is now in a good position to positively react to the ease in fiscal and monetary policy.
Mognetti added that CoinShares had to do some internal reorganization of the Passive Asset Management business unit. The changes are linked to CoinShares surpassing the $1 billion.
In recent months, CoinShares has seen some positive gains after launching its Capital Markets and Trading Services brand May. The desk has witnessed rapid growth in trading volume. The firm is looking forward to a strong 2020 after trading $3 billion in crypto assets last year.