CoinShares Q1 Net Profit Drops 42.2% Amid Market Volatility

Generated by AI AgentCoin World
Tuesday, May 13, 2025 6:08 pm ET1min read
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CoinShares, a digital asset investment firm, reported a 42.2% decrease in net profit for the first quarter of 2025, falling to $24 million compared to $41.5 million in the same period last year. This decline was accompanied by a 15.5% drop in EBITDA, which stood at $30 million for the quarter. The firm's ETPs played a significant role in the quarter's performance, with net inflows of $268 million, of which $202 million came from its Physical Bitcoin (BITC) ETP. Revenue related to assets under management increased by 20.8%, reaching $29.6 million.

Despite the positive performance of its ETPs, CoinShares faced challenges due to macroeconomic headwinds and market volatility. The company's CEO, Jean-Marie Mognetti, highlighted that the quarter was marked by a transformation of the global economic order, rather than mere market volatility. Ether's underperformance led to $23 million in outflows from its CoinShares Physical Staked Ethereum ETP (ETHE), while a 12.1% decline in Bitcoin prices resulted in a 10.7% decrease in assets under management, closing the quarter at $1.52 billion.

The broader market conditions also impacted other crypto firms, with many reporting mixed results.

Coinbase
, for instance, saw a 10% decline in revenue quarter-over-quarter, while Kraken experienced a 7% decrease in revenue from the previous quarter. The market upheaval was driven by global tariffs imposed by the US President, which dragged Bitcoin prices to lows of $78,000 and caused a significant pullback in Ether prices.

CoinShares' strategic initiatives and commitment to innovation will be crucial in driving its success in the coming quarters. The firm continues to focus on expanding its product offerings and enhancing its services to meet the evolving needs of its clients. Despite the challenges faced in the first quarter, CoinShares remains optimistic about the long-term prospects of the digital asset market and its future growth. The company is actively exploring new opportunities and partnerships to strengthen its position in the industry.