Digital asset investment firm – CoinShares – received approval from Autorité des Marchés Financiers (France’s top financial regulator) to acquire Napoleon Asset Management. The agreement will enable CoinShares to provide alternative investment fund manager (AIFM) services and exchange-traded products (ETPs) to the EU market.
Greenlight is given
In late November last year, CoinShares agreed to buy French fintech firm Napoleon Crypto SAS and its subsidiaries. The latter said that upon closing the deal, its employees would become part of the CoinShares family and operate under its rules and market infrastructure.
In a recent announcement, digital asset management firm revealed the acquisition of Napoleon Asset Management (an organization providing cryptocurrency solutions to professional investors). The agreement received the necessary green light from France’s key monetary watchdog as it was signed and completed at the end of June.
CoinShares offers a range of services in the digital asset space, including exposure to Exchange-Traded Products (ETPs). With the recent initiatives, the company hopes to offer its expertise and solutions to a growing number of investors in the European Union.
The company’s CEO Jean-Marie Mognetti argued that the cryptocurrency industry should be reinforced with broader regulations. On that note, he assured that CoinShares has completed all regulatory procedures prior to making the deal.
“While bringing the company into our group is another step in the right direction towards investor protection, we are proud to be one of the most regulated digital asset investment firms in the industry.
Our regulated position in a growing number of jurisdictions is one of CoinShares’ key strengths; This reassures our customers and demonstrates our plans to advance the digital asset sector in Europe.”
For his part, Jean-Charles Dudek, CEO of Napoleon Asset Management, said the agreement was highly anticipated but was “necessarily necessary to await consideration and approval of the change of control by the AMF.” He said that with the approval given, both the institutions will strengthen the relationship between each other.
CoinShares Results Affected by Crypto Drawback
The decline in the digital asset market has affected many firms in the sector, and CoinShares was one of them. The company’s total revenue during the first three months of 2022 was approximately $35 million. In comparison, the number stood at around $50 million during Q1,2021.
Additionally, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell more than 45% during that period, recording $22 million compared to $41 million a year earlier.
As of March 31, 2022, CoinShares had approximately $5 billion in assets under management (AUM), while a year later, they shrunk to $4.4 billion.
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