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CoinShares Stays Afloat Despite Heavy FTX Losses: Q4 Report

CoinShares Stays Afloat Despite Heavy FTX Losses: Q4 Report

#CoinShares #Stays #Afloat #Heavy #FTX #Losses #Report Welcome to InNewCL, here is the new story we have for you today:

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While other hedge funds decided to shut down operations after being hit by the FTX debacle, some managed to survive and stay afloat after overcoming the challenges posed by the stock market collapse.

In its 2022 fourth-quarter report, institutional crypto fund manager CoinShares highlighted that the company managed to remain “financially resilient” despite weathering the FTX collapse at the end of the year. The fund also showcased its achievements, such as its inclusion in Nasdaq Stockholm’s main market and strong inflows into CoinShares physical ETPs.

1/ Amid difficult market conditions, CoinShares has remained financially resilient, with strong inflows into CoinShares physical ETPs recorded in Q4. We are proud to have graduated to the main market of Nasdaq Stockholm, a testament to the hard work and dedication of our team.

— CoinShares (@CoinSharesCo) February 21, 2023

According to CoinShares, more than $31 million worth of assets were stuck on the FTX exchange after the bankruptcy declaration. The fund manager remains unsure if he will ever be able to recover the monies and how much of the assets may be recoverable.

During the quarter, the company also made the decision to shut down its consumer platform CoinShares. The company wrote:

“Market conditions created a situation where our existing capital structure did not allow us to support a consumer activity that required significant upfront investments in marketing.”

In the report, CoinShares CEO Jean-Marie Mognetti also wrote that FTX’s bankruptcy had “a significant impact” on the company’s ability to deploy its HAL algorithmic trading platform in Europe. Despite this, Mognetti also wrote that the company will enter 2023 with clear goals, such as focusing on growing its digital asset management business and institutional offerings.

Related: US regulator crackdown leads to $32 million digital asset outflows: CoinShares

While CoinShares managed to weather the FTX storm, hedge fund Galois Capital was not so lucky. On Feb. 20, the fund informed investors that it was ceasing operations due to losses incurred as a result of the FTX collapse. The company has decided to return its remaining funds to its investors and sell its receivables to buyers who are able to file bankruptcy claims.

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