TLDR
- CoinShares announces the acquisition of Bastion Asset Management to enhance its active crypto investment product offerings.
- The deal aims to strengthen CoinShares’ position in the US market for actively managed ETFs.
- CoinShares will integrate Bastion’s systematic trading strategies and expertise into its platform.
- The acquisition enables CoinShares to offer sophisticated products that generate returns independent of market direction.
- CoinShares plans to go public in the US via a special purpose acquisition company (SPAC) at a $1.2 billion valuation.
CoinShares, a leading European crypto asset manager, has announced its plans to acquire Bastion Asset Management. This move is part of CoinShares’ strategy to enhance its offerings of active crypto investment products in the US. The deal, which is pending approval from the UK Financial Conduct Authority, will strengthen CoinShares’ position in the rapidly growing active ETF market.
CoinShares Focuses on Active ETFs to Meet Institutional Demand
CoinShares has made a significant move to address the growing demand for active investment products. The company will integrate Bastion Asset Management’s systematic trading expertise and strategies into its own platform. This allows CoinShares to offer more sophisticated actively managed ETFs in the US market.
CoinShares spokesperson stated,
“By combining Bastion’s systematic trading expertise with our 1940 Act registration, we can develop actively managed products.”
This acquisition highlights CoinShares’ shift away from passive ETF models, which simply track cryptocurrency prices. Unlike passive ETFs, active ETFs rely on managers to select investments in an attempt to outperform the market.
Passive ETFs have dominated the US crypto market, but CoinShares aims to change that. “Most crypto asset managers in the US focus exclusively on passive products that track cryptocurrency prices,” said the spokesperson. With the acquisition of Bastion, CoinShares plans to introduce products that extend beyond basic market exposure.
Bastion Asset Management brings a wealth of experience in developing systematic, alpha-generating strategies. With over 17 years of experience at top hedge funds, Bastion’s team adds a potent quantitative edge to CoinShares’ platform. These strategies, which utilize academically backed signals, will enable CoinShares to offer sophisticated products that perform independently of market direction.
CoinShares recognizes the growing need for advanced strategies in the US crypto market. “Bastion’s quantitative approach is precisely the type of strategy that differentiates managers in competitive markets,” CoinShares said. The firm expects to leverage Bastion’s deep expertise to meet the demands of institutional investors seeking active management.
The deal comes as the number of active crypto ETFs has surged. These funds, which aim to generate alpha in any market condition, now outnumber traditional passive ETFs. As CoinShares advances its acquisition strategy, the company is positioning itself as a leader in the evolving cryptocurrency investment space.
US Listing Aims to Expand Crypto Presence
CoinShares is also planning a public listing in the US via a special purpose acquisition company (SPAC). This move will enable CoinShares to gain deeper access to the US capital markets and increase its visibility among American institutional investors. The company aims to become a key player in the US crypto market, which it considers the world’s deepest capital market for digital assets.
The listing is expected to enhance CoinShares’ market position significantly. With its expanded product suite, the firm intends to attract a broader range of institutional clients. CoinShares sees the US as a crucial market for its growth, and this acquisition reflects its commitment to meeting the increasing demand for actively managed crypto products.
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Source: https://blockonomi.com/coinshares-expands-active-etf-offerings-with-bastion-acquisition/