CoinShares International Limited, Europe’s largest digital asset investment firm, announced on July 6, 2021, that it has acquired the ETF index business from Elwood Technologies — a strategic move that expands its footprint into the traditional equities market and strengthens its position as a bridge between conventional finance and the cryptocurrency ecosystem.
TL;DR
- CoinShares acquired the Elwood Global Blockchain Equity Index and its associated ETF index business
- The Invesco Elwood Global Blockchain Equity UCITS ETF has amassed over $1 billion in assets since its 2019 inception
- CoinShares also gains an equity research unit focused on cryptocurrency and blockchain-related equities
- No changes expected to the existing Elwood Index or the Invesco Blockchain ETF
- CoinShares reported £17.1 million in Q1 2021 asset management revenues
A Billion-Dollar ETF Portfolio Changes Hands
Through this acquisition, CoinShares takes control of the index platform that powers the Invesco Elwood Global Blockchain Equity UCITS ETF — a fund that provides investors with exposure to internationally listed companies generating revenue from blockchain technology. Since its launch in March 2019, the ETF has attracted over $1 billion in assets under management, making it one of the most successful blockchain-themed investment products globally.
Invesco, which partnered with Elwood Technologies to create the fund, remains on board as the ETF manager. With $1,505 billion in assets under management as of May 31, 2021, Invesco is one of the world’s largest asset managers and was the first institutional asset manager to introduce a blockchain-focused thematic ETF. The collaboration between CoinShares and Invesco is expected to further bridge the gap between traditional asset management and the cryptocurrency sector.
Equity Research Unit Joins CoinShares
Beyond the index itself, the acquisition brings Elwood’s specialized equity research team under the CoinShares umbrella. This unit focuses on analyzing companies operating in the digital assets space — providing institutional-grade research coverage of blockchain-related equities. The research team will continue publishing reports on cryptocurrency and blockchain-related companies, now backed by CoinShares’ broader infrastructure and resources.
The addition of an equity research capability positions CoinShares to offer a more comprehensive suite of services to institutional investors seeking exposure to both direct digital assets and blockchain-adjacent public equities.
Leadership Perspectives
CoinShares CEO Jean-Marie Mognetti described the acquisition as a strategic milestone in the company’s evolution. “As the popularity of thematic ETFs continues to grow, we have seen notable performance dispersion between strategies targeting similar exposures,” Mognetti stated. “With investors seeking exposure to cryptocurrencies as well as equities benefiting from blockchain technology, the Elwood Index and Invesco are natural partners for CoinShares.”
Elwood Technologies CEO James Stickland framed the transaction as enabling his company to focus on its core mission of providing technology infrastructure for the digital assets market. “Elwood is proud to have created the Elwood Global Blockchain Equity Index,” Stickland said. “This transaction enables Elwood to focus on its core mission to provide world class technology infrastructure for the digital assets market.”
CoinShares’ Broader Strategy
The Elwood acquisition fits into a pattern of strategic expansion for CoinShares. The firm reported £17.1 million in Q1 2021 asset management revenues from its digital asset exchange-traded product (ETP) business, establishing itself as a dominant force in European crypto investment products.
In the months surrounding the acquisition, CoinShares also launched Bitcoin and Ethereum exchange-traded funds in collaboration with 3iQ, another digital asset investment firm, and made a strategic investment in Viridi Funds — a new ESG-focused investment management company in the United States targeting the clean energy crypto mining sector.
Implications for Blockchain Investment Landscape
The transaction highlights the growing institutional appetite for blockchain-themed investment products that provide exposure without requiring direct cryptocurrency holdings. The Invesco Blockchain ETF, which will continue operating unchanged under the existing index methodology, allows traditional investors to gain portfolio exposure to companies building blockchain infrastructure, developing distributed ledger applications, or operating digital asset exchanges.
For CoinShares, the acquisition represents a significant diversification beyond pure cryptocurrency products into the broader fintech and blockchain technology investment space — a move that could attract a wider pool of institutional capital.
Why This Matters
CoinShares’ acquisition of the Elwood Blockchain Equity Index marked a pivotal moment in the convergence of traditional finance and digital assets. By controlling both direct crypto investment products and equity-based blockchain exposure vehicles, CoinShares positioned itself as a one-stop destination for institutional investors navigating the digital asset landscape. The deal also underscored the maturation of blockchain as an investable theme — with over $1 billion flowing into a single ETF, the market demonstrated that mainstream investors were ready to treat blockchain technology as a legitimate long-term investment thesis, not just a speculative play on cryptocurrency prices.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
$1B in AUM for that invesco blockchain ETF and coinshares just scoops up the whole index. smart move honestly
17.1M in Q1 revenue from a crypto firm in 2021 is impressive. they rode that bull run perfectly
Petra G. the 17.1M was crypto-specific revenue too. their traditional finance desk was probably a fraction of that
CoinShares grabbing the index behind a $1B ETF was a chess move. they own the infrastructure now, not just the product
etf_pioneer owning the index means CoinShares collects fees regardless of who runs the ETF. brilliant vertical integration play
that $1B AUM was at peak bull market. wonder what that ETF is sitting at now after the drawdowns
index_skeptic that ETF probably sits around $300M now after 2022 drawdowns. still a decent acquisition but the headline number was peak cycle
index_skeptic right that $1B AUM was peak cycle. drawdowns after 2021 probably halved that fund. still a smart acquisition though
index_skeptic that $1B AUM was measured at the 2021 peak. Invesco blockchain ETF was sitting at around 400M by late 2022. still a decent acquisition but the headline number was inflated
elwood blockchain equity index was the right move after seeing those numbers
this is how you legitimize crypto to institutions. dont fight wall street, sell them an index they already understand
selling institutions an index they already understand is genius. most crypto firms try to educate wall street instead of meeting them where they are
17.1M revenue in Q1 2021 from a crypto firm is insane. most of these companies were still running on VC fumes back then
CoinShares getting into equity research in 2021 was smart. every crypto firm was trying to build consumer products while the actual money was in institutional infrastructure
coinshares snapping up the elwood index lines up with invesco etf already at 1b aum
CoinShares buying the index behind a $1B Invesco ETF was smart. they captured the infrastructure layer not just the product
index_rollup_ buying the index behind a 1b invesco etf was the real chess move. coinshares collects fees no matter who runs the product
the equity research unit was the hidden gem in this deal. blockchain equity analysis was basically nonexistent in Europe back then
the equity research unit was underrated in this deal. blockchain equity analysis in europe was basically nonexistent before this acquisition
maximilian b the equity research unit flying under the radar was the real pickup. blockchain equity analysis in europe was basically zero in 2021
that 17.1m q1 revenue from their equity unit shows they were already deep in research