Europe’s largest digital asset trading and investment group, CoinShares, has blamed FTX for the drop in its revenue.
In a fourth-quarter report published on Tuesday, the group revealed that the fund’s total comprehensive income declined by more than 97%. Income in 2021 was expected to be £113.4 million ($136 million), however, by 2022, this had dropped to just £3 million ($3.6 million).
According to Investopedia, comprehensive income is the value of net income plus unrealized gains (or losses) in the same period.
The company’s revenue is also set to drop by around 36% from £80.8 million ($96 million) in 2021 to £51.5 million ($62 million) in 2022.
The collapse of FTX has had an impact on many hedge funds as well. For example, the Gallois hedge fund announced it was ceasing its operations yesterday.
CoinShares was working on turning a profit in the third quarter of 2022, but had a deal with FTX for around $31 million.
CEO is optimistic about the future
CoinShares CEO Jean-Marie Mogenetti believes the company is financially sound despite the market turmoil. He concluded that the firm ended the year successfully after getting listed on the Nasdaq Stockholm.
The CEO predicts that more institutional investors will explore crypto ahead of the next bitcoin halving. He writes, “2023 will be a year of restructuring, consolidation and growth for the industry and consequently for CoinShares. We anticipate the arrival of institutional players in the second half of 2024 as regulations come into force in Europe, the US and the UK. This will also coincide with the next bitcoin halving cycle.”
Have something to say about CoinShares or something? Write to us or join the discussion on our Telegram channel. You can also find us on TikTok, Facebook, or Twitter,
For the latest on BeInCrypto Bitcoin (btc) analysis, Click here
disclaimer
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.