CoinShares Increases Investment in Swiss-based FlowBank to 29.3%

Digital assets firm CoinShares International Ltd. has raised its investment in FlowBank, a Swiss online bank, to 29.3% of the company after a 24.7 million franc ($26.5M) transaction. The company’s strategic investment in the Swiss organization reflects changes in the industry, which will benefit investors in Switzerland and elsewhere. 

What does the Partnership Breed?

According to a rep, the deal makes the digital asset investment firm a joint governing stakeholder with FlowBank CEO Charles Henri Sabet, now having 32.06% voting rights. It previously owned a 9.02% interest for $11.9 million in October.

CoinShares mainly provides traditional stock exchange investors with access to the new digital asset class. CoinShares’ strategic investment in FlowBank brings together two well-known leaders in their respective industries.

FlowBank will use CoinShares’ Galata product to integrate the bank to digital asset standards and markets as part of the agreement. FlowBank will now use its advanced capabilities to expose a plethora of digital assets to its clients through Galata.

“Our clients can invest in CoinShares’ crypto CFDs. They will receive exposure to digital currencies in this way,” stated Charles Henri Sabet. This is just the start. In the next months, we intend to work with CoinShares even more closely and expand our product offering.”

CoinShares administers financial and crypto-based exchange-traded products on stock markets across Europe. Additionally, Jean-Marie Mognetti, the CEO of CoinShares, comes into FlowBank’s board of directors and will advise the company on its crypto strategy.

CoinShares Expansion Plans

CoinShares is Europe’s biggest and most experienced digital asset investment organization. It has almost $3 billion in assets under management on behalf of its clients. The Group is working to increase investor access to the digital asset ecosystem by developing new financial products and services that give confidence and transparency when dealing with this new asset class.

CoinShares has been aggressively expanding through acquisitions. The company’s mission is to promote digital assets adoption and access. In July, it purchased Elwood Technologies’ exchange-traded fund (ETF) index business and Napoleon Crypto, a French crypto investment product provider, in December of last year.

CoinShares is pursuing an ambitious plan to establish the company as a major participant in the digital asset industry, according to their CEO, Jean-Marie.

The company is spearheading a generational transition ushered in by the recent rise of decentralized finance (DeFi), web3, and the deeper integration of blockchain technology into the traditional financial ecosystem. CoinShares has been a pioneer in digital assets since its founding, providing a suite of financial products and crypto ETPs to investors on traditional exchanges such as Euronext, Börse Xetra, and Six Swiss Exchange.

Virtual Assets Expected to Stay

Digital assets have evolved as a distinct asset class, gaining traction among retail investors and increasingly institutional investors, including corporations. We’ve also noticed a big shift in the narrative of large investment banks, which are (re)launching cryptocurrency desks and allowing their high-net-worth clients to invest in bitcoin.