CoinShares, Europe’s biggest digital asset trading and investment group, has blamed FTX for a collapse in its income.
The group published in fourth quarter report on Tuesday which revealed that the fund’s total comprehensive income has tanked by more than 97%. Income in 2021 was £113.4 million ($136 million), however, by 2022, it had crashed to just £3 million ($3.6 million).
According to Investopedia, comprehensive income is the net income plus the value of unrealized profits (or losses) in the same period.
The company’s revenue also declined by nearly 36% from £80.8 million ($96 million) in 2021 to £51.5 million ($62 million) in 2022.
Source: CoinShares Q4 Results
CoinShares was operating at a profit in Q3 2022, but had approximately $31 million tied up with FTX.
CoinShares’ Chief Executive Officer Jean-Marie Mognetti believes that the company is financially robust despite the turmoil in the market. He concludes that the firm closed the year successfully by getting listed on Nasdaq Stockholm.
The CEO predicts more institutional investors will explore crypto before the next Bitcoin halving. He writes, “2023 will be a year of restructuring, consolidation, and development for the industry and consequently for CoinShares. We anticipate the arrival of institutional players in the second half of 2024 as regulations in Europe, the U.S., and the U.K. come into force. It will also coincide with the next Bitcoin halving cycle.”
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.