CoinShares Expands its Operations in the EU by Acquiring Napoleon Asset Management

The digital asset investment firm – CoinShares – received approval from the 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 European Union market.

The Greenlight Has Been Granted

At the end of November last year, CoinShares agreed to purchase the French fintech firm Napoleon Crypto SAS and its subsidiaries. The latter said that upon closing the deal, its employees will become part of the CoinShares family and work under its rules and market infrastructure.

In a recent announcement, the digital asset management firm disclosed the acquisition of Napoleon Asset Management (an organization that provides cryptocurrency solutions to professional investors). The agreement received the necessary green light from France’s leading monetary watchdog as it was signed and completed at the end of June.

CoinShares provides numerous services in the digital asset field, including exposure to Exchange-Traded Products (ETPs). With the recent initiative, the company raised hopes that it could offer its expertise and solutions to an increasing number of investors in the European Union.

Jean-Marie Mognetti – Chief Executive Officer of the firm – argued that the cryptocurrency industry must be reinforced with comprehensive regulations. On that note, he assured CoinShares had completed all regulatory procedures before inking the deal.

“Bringing the company into our group is a further 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 status in a growing number of jurisdictions is one of CoinShares’ principal strengths; it reassures our clients and demonstrates our plans to lea Europe’s digital asset sector,” the exec added.

For his part, Jean-Charles Dudek – CEO of Napoleon Asset Management – stated that the agreement was much anticipated but “necessarily needed to await consideration by and approval of the change of control by the AMF.” With the given nod, the two entities will strengthen the ties between each other, he added.

CoinShares’ Results Affected by the Crypto Drawback

The decline of the digital asset market has affected multiple firms in the sector, and CoinShares was among those. The company’s total revenue during the first three months of 2022 was approximately $35 million. In comparison, this number was nearly $50 million during Q1,2021.

Additionally, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) plunged by over 45% during that period, recording $22 million compared to $41 million a year ago.

As of 31st March 2022, CoinShares’ assets under management (AUM) were around $5 billion, while a year later, they shrank to $4.4 billion.