CoinShares Reveals $30.3M Exposure To Struggling FTX

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  • The firm made the withdrawal requests before FTX’s withdrawal freeze announcement.
  • According to Mognetti, the company’s net asset worth was around $279.8 million.

CoinShares, a cryptocurrency investment, and trading group, has revealed that $30.3 million was exposed to the collapsing cryptocurrency exchange FTX.

In a statement released on Thursday, CoinShares said that it has 190 Bitcoin and 1,000 Ethereum stored in FTX. With a total market value of around $4.3 million. The company claims it made the withdrawal requests before FTX’s withdrawal freeze announcement, but the transactions are still pending.

Robust Financial Health Claimed

According to the announcement, CoinShares has around $111,000 in assets. In addition to the $25.9 million in USD and USDC that are stranded on FTX. CoinShares has said that the losses are indicative of a “limited exposure,” and the company maintains that it is still in “robust financial health.”

CoinShares tweeted that “XBT Provider and CoinShares Physical ETPs remain fully hedged and collateralized” and that “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.

Since FTX is under such “high level of public scrutiny,” CoinShares CEO Jean Marie Mognetti decided to go public with the company’s exposure.

Mognetti stated:

“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.”

According to Mognetti, the company’s net asset worth was around $279.8 million as of the end of September. It has been estimated that the group’s worth may be reduced by around $30.3 million, to $249.5 million, if the exposure was subtracted.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.