CoinShares Acquires Elwood Blockchain Equity Index in Major ETF Expansion Move

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.