By Elizabeth Howcroft
LONDON (Reuters) – European crypto asset manager CoinShares blamed market turbulence for a 97% fall in full-year income and said it lost 26 million pounds ($31 million) in the collapse of major exchange FTX, CoinShares said on Tuesday.
The crypto market plummeted in 2022, as rising rates and a series of bankruptcies at high-profile crypto firms prompted investors to ditch risky crypto assets.
CoinShares’ “total comprehensive income”, a measure which includes expected losses, fell to 3 million pounds in 2022 from 113.4 million in 2021, its fourth quarter earnings report showed.
CoinShares had previously said it had around $30 million worth of crypto assets stuck on FTX, which froze customer withdrawals in November before filing for bankruptcy.
“The collapses and frauds that plagued the industry in 2022 have brought a newfound sense of caution to the market, with investors now seeking trusted, regulated institutional players,” said CoinShares CEO Jean-Marie Mognetti.
CoinShares describes itself as Europe’s biggest digital asset investor and trading group, with 1.4 billion pounds of assets under management at end-2022.
($1 = 0.8339 pounds)
(Reporting by Elizabeth Howcroft, editing by Sinead Cruise and Jason Neely)