CoinShares to acquire billionaire Alan Howard’s ETF provider

CoinShares agreed with Elwood Technologies to acquire a business related to blockchain ETFs with assets above $1 billion for $17 million.

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Elwood Technologies is owned by billionaire Alan Howard, whose fortune is estimated at $2.8 billion.

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Launched in 2019 jointly with Invesco, the Elwood Global Blockchain Equity UCITS provides exposure to a basket of companies using distributed ledger technology (DLT).

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No changes to the ETF structure are expected. As of May 31, assets under management in the fund stood at $1.5 billion.

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Investors are seeking exposure to cryptocurrencies as well as to shares of companies adopting blockchain technology. The ETFs from Invesco and Elwood Technologies are a natural complement to CoinShares’ products, said Jean-Marie Mognetti, CEO of CoinShares.

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In the framework of the deal, CoinShares will receive issued securities from Elwood Asset Management Services Limited in exchange for 1,298,322 of its ordinary shares at $13.09 per share.

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The buyer will gain control of intellectual property and existing contracts, including several new products under development.

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In the first quarter, CoinShares posted revenue of £17.1 million ($23.7 million).

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Earlier in April, CoinShares and asset manager 3iQ Corp agreed to launch a bitcoin ETF in Canada. Later, the partners received approval for listing an Ethereum-based exchange-traded fund on the Toronto Stock Exchange TSX.

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In June, CoinShares received listing of three ETPs with physical backing on Deutsche Börse.

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