Interest in European crypto products is surging, says CoinShares

  • Three new crypto ETPs from Fidelity Investments are increasing competition.
  • As assets and revenues grew, the company defended its fees.
  • “Everyone is doing an ETP today,” a CoinShares executive said.

CoinShares, a European cryptocurrency asset manager, announced Tuesday its highest quarterly earnings and assets under management ever.

Between the fourth quarters of 2020 and 2021, CoinShares reported a 1.6 billion pound (nearly $2.2 billion) increase in ETP assets under management. In 2021, the asset manager earned 114.3 million pounds, up from 18.6 million pounds in 2020.

On Tuesday’s earnings call, CoinShares’ chief financial officer, Richard Nash, said that due to the year-long correlation with digital asset prices, our products have benefited significantly.

During the fourth quarter, CoinShares ETPs generated $106.7 million in fees. This quarter, the asset manager introduced new ETPs, including the first with staking rewards on the Tezos and Polkadot blockchains.

CoinShares isn’t the only asset manager benefiting from the growing interest in ETPs.

Fidelity International launched its Fidelity Physical Bitcoin ETP (FBTC) on Germany’s Deutsche Börse Xetra earlier this month, making it the cheapest European ETP. 21Shares, the world’s largest crypto ETP issuer, recently introduced three new DeFi products.

When asked about competition, CoinShares executives admitted it’s crowded.

“Everyone is doing an ETP today,” said CoinShares CEO Jean-Marie Mognetti. “I’m aware of the competition, and I welcome it because it makes it easier for CoinShares to demonstrate our expertise.”

Increasing competition will not affect CoinShares’ current fee structure, said Mognetti.

“I don’t think we have to drop fees. “You buy CoinShares for the brand name, not for the products,” Mognetti said. Buying expertise is included in the price.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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