CoinShares is all set to expand its foothold with the latest news. The European digital asset investment firm announced acquiring ETF index business from Elwood Technologies.
Interestingly, exchange traded fund [ETF] business of Elwood Technologies is owned by billionaire hedge fund titan Alan Howard, who also happens to be the fourth-largest shareholder in CoinShares. As part of the agreement, Elwood is preparing to sell its blockchain-focused ETF index to the asset manager for $17 million.
According to the official announcement, the transaction for the deal is expected to be completed in the second week of July. It will be settled via an equity swap, for which CoinShares will issue 1,298,322 new ordinary shares at $13.09 per share.
CoinShares’ high-profile acquisition
With this, CoinShares is all set to onboard Elwood’s digital asset-focused equity research team. Commenting on today’s news, CoinShares CEO Jean-Marie Mognetti highlighted the popularity of thematic ETFs that continues to proliferate. The exec also revealed observing notable performance dispersion between strategies whose objective is to accrue similar exposures.
Mognetti also went on that,
“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.”
Elwood had previously gained prominence due to the high-profile alliance with Invesco for the release the Invesco Elwood Global Blockchain Equity UCITS ETF, also known as the Invesco Blockchain ETF. In addition to that, the index has raked in more than $1 billion in assets by faciliating exposure to globally listed firms in the blockchain business.
The two entities involved in the latest deal confirmed that the purchase will not affect the Elwood Index and the Invesco Blockchain ETF. Instead, the main objective of the partnership is to bring traditional asset management and crypto closer by providing enhanced connectivity with institutional players across the world for both the platform.
Gary Buxton, Head of EMEA ETFs at Invesco, also weighed on the potential of the blockchain technology and crypto assets and their role across business, finance and society. Buxton also asserted that the ongoing success and growth of the Invesco Elwood Global Blockchain Equity ETF is an evidence to the ecosystem’s growing momentum and the powerful opportunities for market players. He went on to add,
“We have enjoyed our three-year collaboration with Elwood and are looking forward to building on this partnership with CoinShares.”
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