Digital asset manager CoinShares has agreed Elwood Technologies to acquire a blockchain ETF business with over $1bn in assets for $17m.
Elwood Technologies is owned by billionaire Alan Howard, whose fortune is estimated at $2.8bn.
Launched in 2019 with Invesco, the Elwood Global Blockchain Equity UCITS exchange-traded fund provided an opportunity to invest in a basket of shares in companies using distributed ledger technology (DLT).
No changes to the ETF's structure are expected. As of May 31, the fund had reached $1.5bn under management.
"Investors are seeking access to cryptocurrencies as well as blockchain-enabled stocks. ETFs from Invesco and Elwood Technologies are an organic complement to CoinShares' products," said CEO Jean-Marie Mognetti.
As part of the deal, CoinShares will receive securities issued by subsidiary Elwood Asset Management Services Limited in exchange for 1,298,322 of its own common shares at a price of $13.09.
The buyer will take control of the intellectual property and existing contracts, including several new products under development.
CoinShares reported revenues of £17.1m ($23.7m) for the first quarter.
As a reminder, CoinShares and asset manager 3iQ Corp agreed in April to launch a bitcoin-ETF in Canada. The partners later received approval to list an exchange traded Ethereum-based fund on the TSX.
In June, CoinShares listed three physically-backed ETPs on Deutsche Börse.
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