CoinShares to Acquire FCA-Regulated Bastion Asset Management

CoinShares, the European digital asset manager with roughly $10 billion under management, said Wednesday it will acquire Financial Conduct Authority-regulated Bastion Asset Management. The financial details of the deal, which is subject to UK regulatory approval, were not disclosed in press materials. The move is intended to deepen CoinShares’ capabilities in actively managed crypto strategies and support its U.S. expansion. London-based Bastion specializes in systematic investment strategies for digital assets. The firm has focused on market neutral and quantitative approaches aimed at institutional clients. Under the agreement, Bastion’s team, including CEO Philip Scott and CIO Fred Desobry, will join CoinShares. CoinShares is best known for its exchange-traded products, which give investors passive exposure to cryptocurrencies. Adding Bastion’s strategies will allow the firm to combine passive products with active management, creating what it says could be a more complete suite for investors. For example, a pension fund that currently uses CoinShares’ bitcoin ETPs might soon be able to allocate to a market-neutral crypto fund designed to smooth returns in volatile markets. The acquisition also bolsters CoinShares’ U.S. ambitions. With an Investment Advisor license already in place, the company plans to launch actively managed funds tailored for institutional investors in the U.S., a market where regulatory clarity has made such products increasingly viable. “This acquisition perfectly aligns with our vision to provide our global investor base with comprehensive digital asset management solutions" said Jean-Marie Mognetti, CEO and Co-Founder of CoinShares. "Having worked closely with Bastion over the course of the last year, we have experienced first-hand the performance of their strategies and witnessed their expertise in systematic digital asset investing.”