Coinshares Acquires Napoleon Asset Management, Expands Into EU

CoinShares's acquisition of Napoleon Asset Management will enable them to expand their services into the EU market.

The digital asset investment firm - CoinShares - was granted approval by the Autorité des Marchés Financiers (France's top financial regulator) to acquire Napoleon Asset Management. The deal will allow CoinShares to provide Alternative Investment Fund Manager (AIFM) services and Exchange-Traded Products (ETPs) to the European Union market. 

The Greenlight Has Been Approved

At the end of November last year, CoinShares accepted to buy the French fintech firm Napoleon Crypto SAS and its subsidiaries. The latter said that once the deal is closed, its employees will become part of the CoinShares family and work under its rules and market infrastructure.

In a recent announcement, the digital asset management firm announced the acquisition of Napoleon Asset Management (an organization that provides cryptocurrency solutions for professional investors). The deal received approval from France's leading monetary authority as it was signed and completed at the end of June.

CoinShares, a company in the digital asset field, offers a variety of services, including exposure to Exchange-Traded Products (ETPs). With its recent move, the company has created an opportunity for itself to offer its expertise and solutions to an increased number of investors in the European Union.

Jean-Marie Mognetti, CEO of the firm, said that comprehensive regulations are needed to strengthen the cryptocurrency industry. To illustrate this, he pointed out that CoinShares completed all necessary regulatory procedures before signing the deal.

“Bringing the company into our group is a further step in the right direction towards investor protection, We are proud to be one of the most regulated digital asset investment firms in the industry. Our regulated status in a growing number of jurisdictions is one of CoinShares’ principal strengths; it reassures our clients and demonstrates our plans to lea Europe’s digital asset sector,” the exec added.

Jean-Charles Dudek, CEO of Napoleon Asset Management, said that the agreement was much anticipated but "we had to wait for the AMF's approval before we could finalize it." With that approval, he added, the two entities will strengthen their ties.

The CoinShares' Results Were Affected by the Crypto Market's Decline

The fall of the crypto market has hit multiple firms in the sector, and CoinShares was one of them. The company's total revenue during the first three months of 2022 was about $35 million. This number was nearly $50 million during Q1,2021.

During that period, EBITDA fell sharply, dropping from $41 million to $22 million.

As of 31st March 2022, CoinShares' assets under management (AUM) were around $5 billion. A year later, they shrank to $4.4 billion.