According to Cointelegraph: CoinShares, a leading European asset manager, reported a significant surge in revenue for the second quarter of 2024, achieving nearly $28.5 million. This marks a 110% increase compared to the same period in 2023. The boost in revenue was primarily driven by the sale of CoinShares' claim on the FTX bankruptcy proceedings, which yielded a 116% return, generating approximately $39.78 million.

CoinShares' digital assets performance. Source: CoinShares

The company's latest earnings report, dated August 6, revealed that revenue climbed from 10.7 million pounds ($13.5 million) in Q2 2023 to 22.5 million pounds ($28.5 million) in Q2 2024. CoinShares' strategic move to sell its FTX claim, initially valued at 26.6 million pounds ($33.78 million), resulted in a net gain of 31.32 million pounds ($39.78 million).

However, the quarter also saw a setback with the company's investment in FlowBank Holdings SA. Following the Swiss Financial Market Supervisory Authority's (FINMA) declaration of FlowBank's bankruptcy, CoinShares opted to fully impair its stake, incurring a loss of 21.8 million pounds ($27.6 million). This decision echoes their 2022 approach with FTX assets.

Despite this loss, CoinShares reported an adjusted EBITDA of 26.6 million pounds ($33.7 million) for Q2 2024, bringing the year-to-date total to 60.8 million pounds ($77.2 million). These figures represent a 133% year-over-year increase and a 235% growth compared to the same period last year.

The quarter was also notable for strong net flows, with $67 million in inflows through CoinShares' European physical exchange-traded products (ETPs). These ETPs provide exposure to cryptocurrencies backed by physical assets, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and staked coins like Solana (SOL). The CoinShares Physical Bitcoin ETP attracted $55 million in inflows, leading all Bitcoin ETPs in Europe for Q2. Conversely, the Physical Staked Ethereum ETP saw $15 million in outflows, a trend consistent across most European ETP issuers.

Additionally, CoinShares' spot Bitcoin ETP, recently acquired from Valkyrie Funds, secured an additional $44 million in the quarter. While this is lower than Q1 inflows, it aligns with a broader industry slowdown. The acquisition of Valkyrie Funds was finalized on January 12, following the U.S. Securities and Exchange Commission's approval of spot Bitcoin exchange-traded funds.