Industry Updates

CoinShares crypto ETP range reaches $1bn AUM

CoinShares' Bitcoin Tracker ETP has $466m in AUM

George Geddes

a man in a suit and tie

CoinShares has seen its cryptocurrency ETP range surpass $1bn assets under management (AUM) amid stronger demand for crypto assets during the coronavirus turmoil.

The AUM growth has been a result of both a growing appetite from investors and a significantly strong performing crypto market.

CoinShares’ largest product, the Bitcoin Tracker Euro ETP (COINXBE), has grown its assets to $466m since inception in 2015.

COINXBE had a year-to-date performance of 57.9%, as of 21 August.

Primarily, these products are popular among the retail market, according to Frank Spiteri, chief revenue officer at CoinShares.

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Spiteri (pictured) told ETF Stream: “The private banking space is growing in interest for digital assets which is being driven by the underlying clients requesting access to it.”

However, the firm has seen the level of inquiries from asset managers is also growing over the past couple of months as the digital asset market continues to climb.

Spiteri said CoinShares is regularly speaking with asset managers who are beginning to notice “bottom-up demand” for cryptocurrencies.

There has been a big demand in the retail market which meant the private banking sector has seen their clients request crypto. This is now being acknowledged by asset managers who are wanting to learn more about the industry.

Bitcoin has been the most popular product among investors however ethereum has been growing in popularity over the last 6-8 weeks with CoinShares’ clients.

CoinShares’ second largest product, the Ether Tracker One ETP (COINETHE), launched in 2017 and has grown its assets to $169.3m.

Ethereum has performed even better than bitcoin YTD as COINETHE has climbed 221.7%.

Spiteri said investors have been shifting towards digital assets as they seek a source of liquidity since markets were hit by the implications of coronavirus.

CoinShares is confident the digital asset market is going to continue growing as larger players look to gain exposure.

“We are not at the point yet where there is mass adoption for crypto by the asset management industry but they are definitely becoming more interested in the market,” Spiteri said.

Crypto ETP provider 21Shares also reached a milestone this month having gathered $100m in AUM across 11-strong ETP range.

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