CoinShares, a crypto investment, and the trading firm has disclosed a $30.3 million exposure to the collapsing crypto exchange FTX. CoinShares announced Thursday that it had 190 Bitcoin and 1,000 Ethereum locked up in FTX, totaling around $4.3 million. The firm stated that it asked to withdraw those monies from the exchange before FTX’s announcement that withdrawals would be halted, but that those transactions are still pending.
According to the press release, CoinShares also has an extra $25.9 million in USD and USDC trapped on FTX as well as other assets totaling roughly $110,000.
CoinShares said the losses indicate a “limited exposure,” and the firm says it is still in a state of “robust financial health.”
CoinShares posted on Twitter that “XBT Provider and CoinShares Physical ETPs remain fully hedged and collateralized.” and “The Group has no exposure to FTX’s sister company, Alameda Research.” This indicates that CoinShares is reiterating that its Exchange Traded Products are not currently in danger.
Jean Marie Mognetti, CEO of CoinShares, stated that the company decided to declare its exposure because of the “high level of public scrutiny” surrounding FTX.
“In the spirit of transparency, we have decided to disclose our current exposure to FTX. Thanks to our prudent approach to risk, we had materially reduced our exposure to FTX exchange in response to increased volatility and uncertainty, ahead of FTX’s decision to freeze further withdrawals,” Mognetti said in a statement.
“The financial health of the Group remains strong. As recently announced in the Group’s recent earnings results, CoinShares’ net asset value as at 30 September 2022 stood at £240.6M,” Mognetti added.
At the end of September, according to Mognetti, the company’s net asset worth was about $279.8 million. In principle, excluding the $30.3 million exposure from CoinShares would reduce the group’s value to around $249.5 million.
Even while it might not be apocalyptic, that represents a sizable portion of the group’s overall assets. According to the data given, about 10.8% of CoinShares’ assets are now held in FTX custody.
