ETF Intel Q&A: CoinShares

Danielle Rutsky, Lead Product Manager of ETF Listings at Nasdaq, joins Frank Spiteri, Head of Asset Management at CoinShares, for a conversation about CoinShares’s outlook on crypto in the US Markets.

How does CoinShares view the evolution of crypto ETFs in traditional markets?

CoinShares has been at the forefront of the development for crypto in traditional markets for more than a decade now, and we view the interest in crypto ETPs among traditional investors as a natural expansion of investable assets.  New technology is impacting almost everything in our lives. So, it goes without saying that this would eventually make its way to money and the way that we invest.  The developments in Blockchain technology and decentralised finance will have major implications for global financial markets, which brings both opportunities and challenges.  CoinShares aims to remove as many of the barriers and challenges to allow investors to access the exciting opportunities provided by this new asset class.   

What differentiates your suite of ETFs from other crypto-focused investment products currently available in the market?

As Europe's largest provider of crypto exchange traded products, CoinShares has set out to provide institutional-grade product structure with industry-leading product innovation. We believe that we have succeeded in both, in part, due to our team's experience and familiarity with crypto markets, the underlying technology, and the structuring and distribution of traditional exchange traded products. Unlike other issuers, CoinShares has been involved with crypto since 2014 when our firm launched the world's first regulated bitcoin hedge fund.  Setting up the infrastructure to trade in these markets from an early standpoint has provided us with an edge when it comes to thinking about how to safely and flexibly design products to stand the test of time. This has helped us to achieve the largest physically-backed bitcoin ETP in Europe and to lead the way with our range of zero-fee staked and multi-coins ETPs featuring transparent staking rewards.

What's your vision for the future of crypto ETFs in traditional markets?

We believe crypto ETPs will develop similarly to commodities exchange traded products.  Just as it is common for institutional investors to use ETPs for investment exposure to precious metals and other commodities, we believe that this will become the case with bitcoin and certain crypto assets too. Crypto is an innovative and growing asset class, and every investor should consider the merits of any potential investment without having to be concerned with how they access that asset class.

How do you plan to expand or enhance your ETF offerings in response to market demands?

Our approach to product development is threefold: refining our existing offerings to align with client needs, maximizing accessibility to our products, and proactively identifying new opportunities with future growth potential. In 2023 and 2024, demand in the crypto ETP/ETF market has been largely driven by Bitcoin, with Ethereum, Solana, and XRP also attracting interest to a lesser extent. Looking ahead to 2025, we expect these assets to remain dominant while emerging themes gain momentum. By leveraging insights from our in-house research team, along with intelligence from our sales, distribution, and strategic partners, we aim to stay ahead of evolving investor preferences and deliver innovative crypto ETP/ETF solutions to the market.