CoinShares to acquire ETF index business from Alan Howard's crypto firm

Elwood is set to sell its blockchain-focused ETF index to CoinShares for $17 million.

European digital asset manager CoinShares announced it is acquiring the exchange-traded fund (ETF) index business from crypto firm Elwood Technologies for $17 million. The transaction is expected to be completed in the second week of July, according to the announcement.

Elwood — which is owned by billionaire hedge fund manager Alan Howard — is known for its partnership with Invesco to launch the Invesco Elwood Global Blockchain Equity UCITS ETF, or the Invesco Blockchain ETF in short. By providing exposure to internationally listed companies in the blockchain business, the index has amassed over $1 billion in assets since its inception in 2019.

The transaction will settle via an equity swap, according to the announcement. With a price of $13.09 per share, CoinShares will issue 1,298,322 new ordinary shares with a total worth close to $17 million.

As part of the acquisition, Elwood’s digital asset-focused equity research team will also join CoinShares. The purchase will not impact the Elwood Index and the Invesco Blockchain ETF, the announcement reads. The collaboration aims to bridge the gap between traditional asset management and crypto and provide better connectivity with global institutional players for both parties.

Highlighting the growing interest in thematic ETFs, CoinShares CEO Jean-Marie Mognetti described the Elwood Index and Invesco as “natural partners” for CoinShares. 

Related: CoinShares lists physically backed crypto ETPs on German exchange

“We believe that blockchain technology and crypto assets will continue to evolve and play an increasingly significant, mainstream role across business, finance and society,” Invesco EMEA ETFs head Gary Buxton said. He added that the growth of the equity ETF is “a testament to the sector’s momentum and the compelling opportunities for investors.“

Elwood owner and crypto hedge fund titan Alan Howard is a major investor in CoinShares. Last month, he also made a fresh investment in London-based crypto services firm Copper.co and Asian crypto investment platform Kikitrade.