CoinShares, Europe’s largest digital asset investment firm, made a strategic investment of $11.8 million in the Swiss FlowBank, a financial institution founded in 2020 and licensed by the Swiss Financial Market Supervisory Authority. The digital asset manager will be offering the bank its expertise to launch developments based on its technology stack, Coindesk reported.
CoinShares purchased a total of 110,000 shares of the bank and plans to integrate its crypto technology stack. The shares comprise 9.02% of FlowBank’s enlarged share capital.
FlowBank introduces crypto asset holding next year
FlowBank will offer its customers the ability to sell, hold, and buy cryptocurrencies and other digital assets directly from their bank accounts at the beginning of 2022. FlowBank founder and CEO Charles-Henri Sabet commented:
This further reinforces FlowBank’s commitment to go beyond the frontiers of traditional investment by providing its customers easy-to-use and trusted gateways to traditional and decentralized finance.
CoinShares offers lucrative asset management services
CoinShares reported a comprehensive income increase of $34.9 million y/y in the first quarter, equivalent to a profit increase of 338% from the previous year. In August, they reported another increase in profit, this time fivefold.
Comprehensive income is a profit measure that includes the change in the value of digital assets. In August, Coinshares’ comprehensive income reached $82 million. The company stated in a press release:
This performance has been primarily driven by Bitcoin and Ethereum prices reaching all-time highs in April and May.
Regarding CoinShares’ technology stack, Jean-Marie Mognetti, CEO and co-founder commented:
CoinShares’ technology stack has been the backbone of our success since 2015. To date, this infrastructure layer has powered our internal commercial developments. FlowBank’s and our vision for the banking and investing industries are aligned and will serve as fertile soil for a fruitful partnership.
After raising almost $18 million in a public offering, CoinShares began trading on the Nasdaq First North Growth Market in March.
CoinShare buys $17M in Elwood Technologies ETF
Last month, they announced they would buy shares worth $17 million in Elwood Technologies’ exchange-traded fund (ETF) index business, which partners with Invesco through the Invesco Elwood Global Blockchain Equity UCITS ETF. This ETF’s assets exceed $1 billion.
Alan Howard, a billionaire investor, owns Elwood Asset Management. It manages the personal digital assets of its owner. After the deal, Elwood will focus on providing technology infrastructure for the digital assets market.
