As noted in the announcement, dated July 6, 2021, CoinShares is set to expand its footprint into equities market with its acquisition of the exchange-traded -fund or ETF index business from Elwood Technologies.
The Invesco Elwood Global Blockchain Equity UCITS ETF has more than $1 billion in AUM. CoinShares also adds equity research division and coverage of cryptocurrency and blockchain or DLT=focused equities..
CoinShares International Ltd (Nasdaq First North Growth Market: CS) noted that through this platform, Elwood partnered with Invesco to introduce the Invesco Elwood Global Blockchain Equity UCITS ETF, which offers exposure to globally established, listed firms that are now generating earnings from blockchain businesses.
As stated in the release:
“The Invesco Blockchain ETF has amassed over $1B in assets since its inception in 2019. In addition to index creation activity, Elwood built a best-in-class equity research team focused on companies in the digital assets space. The equity research unit will join CoinShares and benefit from the scale provided by this organization.”
As mentioned in the update, there will be “no changes to the Elwood Index and no impact to the Invesco Blockchain ETF.” It will continue to provide research reports on crypto and blockchain-related equities, the announcement confirmed.
CoinShares CEO Jean-Marie Mognetti stated:
“As the popularity of thematic ETFs continues to grow, we have seen notable performance dispersion between strategies targeting similar exposures. With investors seeking exposure to cryptocurrencies as well as equities benefiting from blockchain technology, the Elwood Index and Invesco are natural partners for CoinShares.”
“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.”
The collaboration between CoinShares and Invesco will aim to close the gap between conventional asset management and digital currencies. It will also focus on expanding the companies’ connectivity with institutional investors and allocators.
With more than $1,505B AUM as of May 31, 2021, Invesco is notably one of the largest asset managers providing an extensive range of “active, passive and alternative investment capabilities, and was the world’s first institutional asset manager to introduce a blockchain-focused thematic ETF via its partnership with Elwood in March 2019,” the release noted.
Elwood Technologies CEO James Stickland remarked:
“Elwood is proud to have created the Elwood Global Blockchain Equity Index. This transaction enables Elwood to focus on its core mission to provide world class technology infrastructure for the digital assets market. We are very excited about the opportunities in this rapidly growing area.”
CoinShares reported £17.1M in Q1 asset management revenues “from its digital asset ETP business, and recently launched bitcoin and ethereum ETFs in collaboration with 3iQ, and made a strategic investment in a new ESG-focused investment management company in the United States, Viridi Funds,” the announcement revealed.
Gary Buxton, Head of EMEA ETFs at Invesco, added:
“We believe that blockchain technology and crypto assets will continue to evolve and play an increasingly significant, mainstream role across business, finance and society. The ongoing success and growth of the Invesco Elwood Global Blockchain Equity ETF is a testament to the sector’s momentum and the compelling opportunities for investors. We have enjoyed our three-year collaboration with Elwood and are looking forward to building on this partnership with CoinShares.”