CoinShares Reveals $30.3 Million Exposure to FTX, About 11% of Total Assets



Europe’s largest digital asset investment firm, CoinShares International Ltd, said it has around $30.3 million in cryptocurrencies and other assets locked on the collapsed FTX exchange, making it the latest in a series of big companies to be caught up in the fallout of the crisis.

The brokerage’s exposure to FTX — which accounts for about 11% of its total net asset value — consists of about $25.9 million in US dollars and USDC, a dollar-pegged stablecoin, she said. said in a statement to Bloomberg News. The pending withdrawals also include 190 Bitcoin and 1,000 Ether, worth $3.2 million and $1.2 million respectively, at current prices.

The assets were part of its capital markets division and proprietary trading business, CoinShare chief executive Jean-Marie Mognetti said in an interview. Coinshares’ exchange-traded products business is unaffected by the potential loss and the company has no exposure to Alameda Research, a trading firm co-founded by FTX CEO Sam Bankman-Fried, Mognetti added. .

CoinShares stock fell 6.6% earlier in Thursday’s session, before reducing the decline to 0.5%.

FTX began to experience serious delays with withdrawals from its platform on Monday, following widespread speculation about the financial health of the exchange as the value of its own native FTT token plummeted. A potential takeover deal with rival exchange Binance collapsed on Wednesday night, and Bankman-Fried warned investors of potential bankruptcy if his firm cannot secure funds to cover a shortfall of up to $8 billion. of dollars.

Once valued at $32 billion, FTX and Bankman-Fried have been held up by many as the poster children for crypto, a factor that increases the contagion potential of their sudden collapse. Other companies revealed to have been affected by FTX’s demise include Amber Group, Wintermute, Galaxy Digital Holdings Ltd. and Sequoia Capital.

“For too long, things like FTX have been perceived by investors as a quasi-banking or quasi-financial institution, which it is not,” Mognetti said in an interview Thursday. “We can all trade crypto on an exchange, but you’re exposing yourself to a variety of risks that aren’t really in your favor.”

Sweden-listed CoinShares, which offers exchange-traded products tracking the prices of Bitcoin, Ether, and other cryptocurrencies, also operates a tracker for FTX’s FTT token. The value of the CoinShares FTX Physical FTX Token (ticker: CFTT) product has fallen more than 90% since the close of trading last week, mirroring falling spot FTT prices elsewhere.

Mognetti said the firm’s asset management team is monitoring the “fluid” situation around FTT and CoinShares’ other FTX-linked ETP – a product follow the price of staked Solana tokens – up close.

“It’s still liquid both ways, people can withdraw or cash out,” he said, adding that an update would be posted in due course.

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