CoinShares Covets Digital Asset Glory with Napoleon Acquisition

"After the recent events in the digital asset sector, it has never been more clear that strong regulation is needed for crypto to thrive."

Digital asset investment firm CoinShares International Limited is dreaming of European conquest with the acquisition of Paris-based Napoleon Asset Management.

Jersey-based CoinShares says it got approval to buy Napoleon Asset Management from the Autorité des Marchés Financiers (AMF).

The transaction follows the acquisition of the Napoleon Group last December and fits with CoinShares’ strategy of “developing into a full-service digital asset investment and trading group”.

Financial details or info on job cuts were not disclosed about the transaction. Napoleon Group has 16 employees listed on LinkedIn.

Jean-Marie Mognetti, Chief Executive Officer of CoinShares, states: “After the recent events in the digital asset sector, it has never been more clear that strong regulation is needed for crypto to thrive. As such we are very pleased to have received this approval from the AMF to acquire Napoleon Asset Management.”

Mognetti doesn’t mention any names, but as Bloomberg reports this month, crypto hedge fund Three Arrows Capital has filed for Chapter 15 bankruptcy, a move that protects its US assets while a liquidation is carried out in the British Virgin Islands. The fund, founded by former Credit Suisse traders, managed an estimated $10 billion (£8.2 billion) of assets as recently as March, according to blockchain analytics firm Nansen.

In addition, the price of Bitcoin has been falling in dramatic fashion. It now stands at £15,796 – a fall of 53% over the last six months.

  • Hello again – Crypto Company Wirex Makes UK Comeback – read the news here

There’s more doom and gloom as job cuts have also occurred. Business Insider calculates that up to June, multiple crypto exchanges announced layoffs that will add up to roughly 1,700 job cuts in total.

Anyway, CoinShares will be focused on its progression and plans. It talks a lot about regulation in the digital asset industry and offers various regulated products and services. It works with individuals and institutions.

The St Helier-headquartered company was founded in 2017, according to LinkedIn. Although, CoinShares (UK) Limited was incorporated in 1996 – based on Companies House data.

The firm has an Alternative Investment Fund Manager (AIFM) licence. The acquisition of Napoleon Asset Management allows CoinShares to offer AIFM compliant products and services, in addition to being an issuer of crypto exchange traded products (ETPs).

These ETPs offer access to digital assets. They are designed for multi-asset portfolios and available via traditional brokers and banks across Europe.

Like the diminutive Corsican military leader from history, CoinShares has European glory in its sights.

It explains that the AIFM licence carries a passporting regime that allows it to provide and market services and products throughout the European Union.

The fintech firm adds: “The acquisition will also enhance CoinShares’ offering by leveraging active investment strategies based on algorithmic trading and artificial intelligence for digital assets built by Napoleon Asset Management quants teams.”

Image by rawpixel.com.

Antony Peyton
Antony Peyton
Antony Peyton is the Editor of eWeek UK. He has 18 years' journalism and writing experience. His career has taken him to China, Japan and the UK - covering tech, fintech and business. Follow on Twitter @TonyFintech.
Get the Free Newsletter
Subscribe to Techrepublic UK for weekly updates from Techrepublic and eWEEK on the latest in UK top tech news, trends & analysis
This email address is invalid.
Get the Free Newsletter
Subscribe to Techrepublic UK for weekly updates from Techrepublic and eWEEK on the latest in UK top tech news, trends & analysis
This email address is invalid.

Popular Articles