Blockchain News

CoinShares Set To Aquire Elwood’s, Blockchain Focused, ETF Index for $17 million

CoinShares Set To Aquire Elwood’s, Blockchain Focused, ETF Index for $17 million

CoinShares, a European digital asset manager, recently made a significant announcement. The announcement was regarding, CoinShares quiring the ETF index business from Elwood Technologies for $17. According to the announcement, the transaction is set to be complete by the second week of July.

Elwood Technologies

Elwood is a crypto firm owned by prominent billionaire hedge fund manager Alan Howard. It partnered with Invesco launching the Invesco Blockchain ETF back in 2019. The ETF provided much-needed exposure for internationally listed companies in the realm of blockchain. Due to this, they amassed over a billion dollars in assets.

The Aim Of This Collaboration

According to the announcement, the purchase will not affect both Elwood Index and the Invesco Blockchain EFT. Moreover, Elwood’s digital asset-focused equities and the research team will join CoinShares. Bridging the gap between traditional asset management and crypto-assets is what this collaboration aims at. Therefore providing better connectivity with global players.

The Transaction Process

An equity swap will be required to settle the transaction between these two companies. So, CoinShare will issue 1,298,322 new ordinary shares with the price of $13.09 per share. In conclusion, this will total out to almost $17 million.

Good Relations

CoinShares and Elwood have had a pretty good relationship over the years. The owner of Elwood, Alan Howard, is a major investor in CoinShares. Among the talks of buying ETFs, CoinShares CEO Jean-Marie Mognetti emphatically declared Elwood Index and Invesco as “natural partners” for CoinShares. 

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.