CoinShares doubled earnings in 2020 after fourth quarter bitcoin surge

Quick Take

  • CoinShares reported growth in assets under management of 336% in 2020
  • That growth has continued into 2021, with the group now managing some $4.5 billion

CoinShares, Europe’s largest crypto asset manager, doubled its earnings in 2020 after surging crypto markets drove significant growth in its assets under management.

The company, which recently went public through a listing on Sweden’s Nasdaq First North Growth Market, has filed financial results for the year ended December 31, 2020.

The filings show that CoinShares’ adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew to £22.4 million ($30.8 million), doubling from £11.2 million ($15.4 million) the previous year. The group’s total comprehensive income for 2020 was £18.7 million ($25.7 million), a 109% increase on the £8.9 million ($12.25 million) reported in 2019.

The key driver of the increased earnings was a surge in assets under management across the company’s range of exchange-traded bitcoin products (ETPs). Group assets under management grew 336% to £1.74 billion ($2.4 billion) in 2020.

That growth has continued into 2021. CoinShares currently has more than $4.5 billion in assets under management. Bitcoin Tracker One and Bitcoin Tracker Euro, its flagship ETPs, hold $1.3 billion and $2 billion, respectively.

The 2020 results state that trading gains have “further strengthened” in 2021, which corresponds with the trajectory of the wider crypto rally. Bitcoin reached an all-time high of $60,000 in mid-March.

Jean Marie Mognetti, CoinShares’ CEO, said 2020 was “by any financial measure” the most successful year in the company’s history.

“Q4 2020 will be remembered as a tipping point in the journey of bitcoin and digital assets towards being recognized as a genuine asset class. This utterly transformative way to create, use and consume financial services has started to attract institutional capital at scale,” he added.

The Block recently revealed that British billionaire Alan Howard, co-founder of Brevan Howard, is a significant shareholder in CoinShares – after IPO filings showed he held a stake worth around $60 million.


© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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