CoinShares remains afloat despite heavy FTX losses: Q4 report

While different hedge funds decided to adjacent down operations aft being deed by the FTX debacle, immoderate managed to past and enactment afloat aft navigating the challenges brought astir by the illness of the exchange. 

In its fourth-quarter study for 2022, organization crypto money manager CoinShares highlighted that the steadfast managed to stay “financially robust” contempt dealing with the FTX illness astatine the extremity of the year. The money besides presented its wins, specified arsenic its graduation to Nasdaq Stockholm’s main marketplace and beardown levels of inflow into CoinShares carnal ETPs.

1/ Amidst hard marketplace conditions, CoinShares has remained financially robust, with beardown levels of inflow into CoinShares Physical ETPs recorded successful Q4. We're arrogant to person graduated to Nasdaq Stockholm's main market, a testament to the hard enactment and dedication of our team.

— CoinShares (@CoinSharesCo) February 21, 2023

According to CoinShares, much than $31 cardinal worthy of assets were stuck successful the FTX exchange following its bankruptcy declaration. The money manager remains unsure if they volition ever beryllium capable to retrieve the funds and however overmuch of the assets tin perchance beryllium recovered. 

During the quarter, the steadfast besides made the determination to upwind down its CoinShares Consumer Platform. The steadfast wrote:

“Market conditions gave emergence to a concern that did not let us, with our existing superior structure, to enactment a user enactment that required important upfront concern successful marketing.”

Within the report, CoinShares CEO Jean-Marie Mognetti besides wrote that FTX’s bankruptcy “had a important impact” connected the firm’s capableness to deploy its algorithmic trading level HAL successful Europe. Despite this, Mognetti besides wrote that the steadfast would determination into 2023 with wide goals, specified arsenic focusing connected expanding its integer plus absorption concern and organization offerings. 

Related: US regulatory crackdown leads to $32M integer plus outflows: CoinShares

While CoinShares managed to upwind the FTX storm, hedge money Galois Capital was not arsenic lucky. On Feb. 20, the money told investors that it was shutting down its operations due to the fact that of the losses incurred by the FTX collapse. The steadfast made a determination to springiness backmost its remaining funds to its investors and merchantability disconnected its claims to buyers who are much susceptible of pursuing bankruptcy claims.