Jersey-based CoinShares has expanded its footprint into the equities market, buying the ETF index business from Elwood Technologies. Elwood had previously partnered with Invesco to launch the Invesco Elwood Global Blockchain Equity UCITS ETF, which provides exposure to internationally listed companies generating earnings from blockchain technology.
The Invesco Blockchain ETF has amassed over USD1 billion in assets since its inception in 2019. In addition to index creation activity, Elwood has an equity research team focused on companies in the digital assets space which will join CoinShares.
The firm says that there will be no changes to the Elwood Index and no impact to the Invesco Blockchain ETF, and it will continue to publish research on cryptocurrency and blockchain-related equities.
CoinShares CEO Jean-Marie Mognetti says: “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 firm writes that this collaboration between CoinShares and Invesco will further bridge the gap between traditional asset management and cryptocurrencies while broadening both firms’ connectivity with global institutional investors and allocators.
With USD1,505 billion in assets under management as at May 31, 2021, Invesco is one of the world’s largest asset managers offering a comprehensive 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.
Elwood Technologies CEO James Stickland says: “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 GBP17.1 million in first quarter asset management revenues from its digital asset ETP business, and recently launched bitcoin and ethereum ETFs in collaboration with 3iQ. The firm also made a strategic investment in a new ESG-focused investment management company in the United States, Viridi Funds.
Gary Buxton, Head of EMEA ETFs at Invesco, says: “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.”