Coinshares, one of the oldest and largest players in the digital asset management ecosystem, is inching closer to its ambitious goal of listing on a U.S. stock exchange, driven by a wave of more crypto-friendly regulations. The company revealed this exciting prospect as it presented its quarterly results on Tuesday.
The first quarter of 2025 saw Coinshares reporting a net profit of $23.8 million, a drop from $41.5 million in the same period last year. Nevertheless, the company noted a “robust performance across all platforms.” Coinshares Physical, the company’s flagship product, continues to dominate the European market for crypto exchange-traded products (ETPs), attracting net inflows of $268 million—three times more than its closest competitor, despite challenging market conditions where Bitcoin fell by 12.1% and Ethereum plummeted by 45.2%.
While Coinshares demonstrated resilience, other platforms have shown a “mixed picture” with notable net outflows. The Capital Markets division of Coinshares achieved moderate results this quarter, with profits and other income reaching $11.9 million, indicating a return to normalcy following the extraordinary post-election rally in the previous quarter.
However, the sharp depreciation of Ethereum took a toll on staking revenues, which dipped 26% quarter-on-quarter to $5.6 million.
Having made its debut on the Stockholm exchange in 2021, Coinshares is keen to expand its footprint in the U.S., the world’s largest market for digital assets. The company sees the current favorable regulatory climate in the U.S. as a turning point in making this goal more attainable.
In a bid to enhance liquidity for its shares, Coinshares is ramping up analyst coverage and conducting roadshows to engage institutional investors. The company also made headlines recently by distributing its first quarterly dividend for 2024 on May 6, signaling its commitment to shareholder value.
Effective January 1, 2025, Coinshares switched its accounting currency from British pounds to U.S. dollars to better align with its operational landscape. This strategic move could very well be a precursor to the much-anticipated U.S. IPO.
CEO Jean-Marie Mognetti reflected on the company’s performance, stating, “Our proactive approach to market volatility has allowed us not only to remain resilient but also to continue growing, particularly through our Coinshares Physical platform, which is surpassing its peers at an unprecedented pace.” Regarding the prospective U.S. IPO, he added, “As the U.S. regulatory landscape evolves positively, our goal is becoming increasingly realistic and aligns with our strategy to strengthen Coinshares’ presence in the world’s largest capital market for digital assets.”
Coinshares offers an array of financial services, including asset management and trading for digital assets. With its roots in the crypto sector stretching back to 2013, the company has its headquarters in Jersey and maintains a robust presence with offices in France, Sweden, Switzerland, the United Kingdom, and the USA. Coinshares has also made investments in the Geneva-based digital bank Flowbank, which faced a closure ordered by Finma in 2024.
Who knew that a company deeply entrenched in digital assets could make market moves so impactful? Watch out, Wall Street; Coinshares is gearing up for some serious disruption!
What is Coinshares’ net profit for the first quarter of 2025?
Coinshares reported a net profit of $23.8 million for the first quarter of 2025.
What factors contributed to the drop in staking revenues?
The steep decline in Ethereum’s value negatively impacted staking revenues, leading to a quarter-on-quarter decrease of 26% to $5.6 million.
When did Coinshares change its accounting currency?
Coinshares switched its accounting currency from British pounds to U.S. dollars, effective January 1, 2025, to better reflect the economic environment in which it operates.
