CoinShares Q2 Profits Soar; CEO Positive on Recent SEC Lawsuits

Key Takeaways:

• For Q2 2023, CoinShares, announced total revenue of 20.3 million pounds ($25.9 million).
• Asset management fees decreased by 25% year over year to $10.6 million ($13.52 million).
• Quarterly profits for CoinShares totaled £5.3 million ($6.76 million).

In the second quarter of 2023, CoinShares, a European manager of Bitcoin, Ether, and other crypto exchange-traded products (ETPs), announced total Q2 income of 20.3 million pounds ($25.9 million), up 33% year over year.

Asset management fees decreased by 25% year over year to $10.6 million ($13.52 million), but gains from capital markets operations like trading amounted to $10 million, as reported in the company’s August 1 earnings release. Quarterly profits for CoinShares totaled £5.3 million ($6.76 million).

Instantly Verifying ETP’s Backing

The entire value of the group’s managed assets has been relatively stable at about 2.1 billion pounds ($2.68 billion). During the period in question, CoinShares launched the “Ledger Lens” tool supported by an undisclosed accounting firm, which allows investors to instantly verify the ETPs’ backing.

According to CoinShares CEO Jean-Marie Mognetti, the SEC’s cases against Binance and Coinbase in the most recent quarter represent a potentially good development for enterprises in traditional finance.

The CEO stated:

Actions by the SEC may “dramatically alter the regulatory landscape, potentially limiting access to regulated institutions already accustomed to navigating complex legal and regulatory environments, such as traditional finance (TradFi) entities.”

Nearly 9 million pounds ($11.48 million) was generated in Q3 2023 through decentralized financing, staking, and lending. This is in addition to the management fees collected from ETPs.

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