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CoinShares Group Update

By   Jean-Marie Mognetti 13th March 2020

JERSEY – March 13, 2020

In light of recent developments in both traditional and digital asset markets, the CoinShares Group has prepared this short note to inform its clients and the larger community about its operational continuity and robustness, and to share what we are doing throughout the Group to manage the significant amount of uncertainty and risk that results from current volatility levels.

Since 2014 and our launch of the world’s first regulated bitcoin fund, the Group has gone through periods of significant market turbulence, and will do so again. We remain confident in our ability to provide our full suite of services to our clients, as we have in the past, and will do in the future. Over the last seven years of operating in the digital asset market, we have developed robust risk management controls and procedures to support our operations. We are well-prepared, and none of our offerings have experienced any downtime. It is not a surprise that this is the case, as they are specifically designed to be strong enough to deal with exactly the sort of volatility we are currently experiencing.

While the volatility and activity we have been experiencing over the past few days has kept us busy, our exceptional team has managed it all in stride, while staying true to the values of our group – professionalism, transparency, and integrity. We have been able to manage everything that has been thrown at us, and we credit much of this to the strong relationships we have with our market counterparties across our business lines. We’d like to commend them for their reliability, support and professionalism in these testing times.

Lastly, we would like to reiterate our confidence in digital assets. We are seeing a global re-pricing of everything - from oil, to stocks, to bonds, to treasuries, and yes, even bitcoin. We believe Bitcoin is a “risk off” asset trading momentarily as “risk on”, like other assets that have historically been seen as “risk off” are trading in legacy markets. The months and years ahead, as we look at a negative interest rate environment and significant levels of quantitative easing across the globe, will be bitcoin's true test.

We at CoinShares are confident that once the dust settles, digital assets will further cement their position as a fundamental component of investor portfolios. As a pioneer in digital asset investing, the CoinShares Group will continue to provide access to the digital asset ecosystem while serving as trusted partners for our clients.

We wish everyone all the best in these trying times.

Jean-Marie Mognetti, CEO, and the CoinShares Board

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