On November 7, 2023, CoinShares International Limited shared its Q3 2023 financial performance, signaling a solid quarter for the Europe-based alternative asset provider specializing in digital assets.
CoinShares achieved a significant milestone in Q3 2023, generating £16.7 million in sales, gains, and other income. Notably, this figure marked a promising increase from the previous year’s Q3 results, excluding the exceptional loss from TerraUSD. The company’s Adjusted EBITDA surged to £9.9 million, reflecting a substantial growth rate compared to the same period in 2022.
Despite market challenges, CoinShares maintained its dominant position in the European crypto exchange-traded products (ETPs) market, boasting a 50% market share. However, the quarter saw a decline in flows from Europe’s crypto ETPs, with CoinShares Physical experiencing its lowest quarterly inflows since its inception. While Bitcoin products faced an outflow of $3.8 million, the company’s altcoin products attracted $10.5 million in inflows.
Capital Markets Advancements
CoinShares demonstrated resilience and adaptability in the face of evolving market dynamics. The company continued to optimize its holding and loan activities, adapting to the shifting trend of crypto platforms distancing themselves from holding client funds. Emphasizing CME futures trading strategies, CoinShares effectively navigated challenges posed by low volatility and limited spot amounts, yielding promising results with £9.3 million in sales in the Capital Markets segment.
In September, CoinShares initiated discussions with external limited partners (LPs) across Asia, Europe, and, notably, the United States, marking a strategic move in its Hedge Fund Solutions program. This expansion is designed to cater to the diverse risk preferences of clients, allowing for customized portfolio management. With the program already operational and gaining traction, CoinShares anticipates further integration of these strategies in its future operations, fostering optimism and growth prospects for the company.
Reflecting on the company’s performance, CoinShares’ CEO, Jean-Marie Mognetti, emphasized the burgeoning synergy between traditional finance (TradFi) and digital asset systems, reiterating the company’s commitment to navigating regulatory frameworks and facilitating institutional integration within the crypto space. As the company looks ahead, the successful Q3 results set a positive trajectory for CoinShares as it continues to lead and innovate within the digital asset landscape.
