European crypto asset manager CoinShares accused market turbulence of a 97% decline in annual income and claimed that it lost 26 million pounds ($31 million) in the failure of major exchange FTX. The statement came after CoinShares blamed market fluctuations and plunges for a 97% fall in full-year income.
The cryptocurrency market had a precipitous decline in 2022 as a direct result of investors fleeing riskier crypto assets in response to increasing interest rates and a slew of bankruptcy at prominent cryptocurrency organizations.
Coinshare’s losses were bewildering
According to the company’s financial report for the fourth quarter, CoinShares’ “total comprehensive income,” which is a figure that includes anticipated losses, decreased to 3 million pounds in 2022 from 113.4 million pounds in 2021.
CoinShares had previously said that it had about $30 million worth of crypto assets frozen on FTX before the exchange filed for bankruptcy. FTX had blocked client withdrawals in November before declaring bankruptcy.
According to Jean-Marie Mognetti, CEO of CoinShares, the crashes, and scams that plagued the business in 2022 have introduced a greater sense of caution to the market, with investors now seeking reputable, regulated institutional actors.
With over 1.4 billion pounds worth of assets under management as of the end of 2022, CoinShares promotes itself as Europe’s largest digital asset investment and trading firm.
Coinshare’s troubles
CoinShares stated at the end of the previous year that it had lost more than $30.3 million as a result of its exposure to the failed FTX exchange. Despite having a significant sum of Bitcoin, Ethereum, and other assets trapped on the exchange, CoinShares has verified that it has no exposure to Alameda Research. This is despite the fact that CoinShares has stated that it does not have any exposure to Alameda Research.
CoinShares said in a statement that was published on November 10 that it had a total of 190 Bitcoin and 1,000 Ethereum locked up in FTX, bringing the total value to close to $4.3 million. The firm had then requested to remove those assets from the exchange prior to FTX making its notification banning withdrawals, but they had not received an instant response to their request.
