CoinShares brought in $55 million in Q1 2024 in ‘strongest quarter ever’

CoinShares reported $55.2 million in revenue, gains, and other income for the first quarter.

The EU crypto investment firm’s May 14 earnings report described the total as a 216% year-over-year increase.

CoinShares also reported a comprehensive income of $42.9 million for the first quarter, an elevenfold year-over-year increase. It reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $43.0 million and adjusted earnings per share (EPS) of $0.63.

The company held $4.0 billion of crypto, including $2.3 billion of Bitcoin (BTC), $1.6 billion of Ethereum (ETH), and $35 million of other cryptos.

CoinShares called the first quarter its “strongest quarter ever” and said it outperformed all quarters since 2021 “in nearly every aspect.”

ETFs and the US market

CoinShares CEO Jean-Marie Mognetti described favorable conditions this quarter, including the launch of spot Bitcoin ETFs in the US, which he called a “validation of CoinShares’ initial investment thesis and vision,” and the broader crypto bull market.

Mognetti noted the challenge of competing with US spot Bitcoin ETF issuers, including financial giants like BlackRock and Fidelity. He said that the company aims to break even on its spot Bitcoin ETF while profits come from other products.

CoinShares commented on its acquisition of Valkyrie Investment’s US-based ETF business. Valkyrie’s spot Bitcoin ETF (BRRR) generated $452.5 million in net inflows, while the Valkyrie Bitcoin Futures Leveraged Strategy ETF (BTFX) produced $44.6 million in net inflows.

European activities

The company also discussed its European products and operations

CoinShares Digital Securities, which issues the CoinShares Physical suite of ETPs, saw $51 million in outflows from CoinShares Physical Bitcoin (BITC) during the first quarter. The firm attributed the outflows to hedge funds “exiting a popular long European ETP short CME trade.”

The firm also reduced BITC fees due to increased competition from US ETFs.

CoinShares Digital Securities saw $35 million in inflows into all other crypto products, with half of the relevant inflows from Ethereum, Solana, and Polkadot.

XBT Provider, CoinShares’ Nordic-focused crypto ETP, ended the quarter with $3.6 billion. It saw only $240 million in losses in the year’s first quarter compared to $400 million in losses in the first quarter of 2021. The firm expects further losses if the crypto market’s bull run continues.

CoinShares’s BLOCK Index, which offers exposure to listed blockchain companies, returned 12.4% and reached $877.3 million in assets under management.

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