• CoinShares, an institutional crypto fund manager, managed to stay afloat despite the FTX bankruptcy at the end of the year.
• The firm highlighted strong levels of inflow into CoinShares physical exchange traded products in their fourth-quarter report for 2022.
• However, $31 million worth of assets remain stuck in the FTX exchange following its bankruptcy declaration.
CoinShares Remains Financially Robust
CoinShares, an institutional crypto fund manager, managed to stay afloat despite the FTX bankruptcy at the end of the year. In its fourth-quarter report for 2022, the firm highlighted strong levels of inflow into CoinShares physical exchange traded products and that it had graduated to Nasdaq Stockholm’s primary market. Despite this success, $31 million worth of assets remain stuck in the FTX exchange following its bankruptcy declaration.
Impact on Algorithmic Trading Platform
The collapse of FTX has had a significant impact on CoinShare’s ability to deploy its algorithmic trading platform HAL in Europe. Despite this setback, CEO Jean-Marie Mognetti has expressed that they are still moving forward with clear goals such as focusing on expanding their digital asset management business and institutional offerings in 2023.
Galios Capital Closes Operations
Unfortunately for other hedge funds hit by the FTX debacle, not all have been able to survive and stay afloat like CoinShares did. On Feb 20th Galois Capital announced that it was shutting down its operations due to losses incurred from FTX’s collapse .
Closure Of Consumer Platform
Due to difficult market conditions CoinShare also made the decision to wind down its consumer platform during Q4 as it required „significant upfront investment in marketing“ which wasn’t feasible with their existing capital structure.
Conclusion
Although some hedge funds were unable to survive after being hit by FTX’s collapse there were still some who managed to weather out the storm and remain financially robust like CoinShare did – thanks largely in part due to strong levels of inflow into their physical ETPs throughout Q4.