CoinShares Expands Digital Asset Management with Bastion Acquisition

CoinShares International Limited (NASDAQ Stockholm: CS / OTCQX: CNSRF), a leading European asset manager focused on digital assets with approximately US$10 billion in assets under management, announced the acquisition of Bastion Asset Management Limited, a London-based alternative investment manager regulated by the UK Financial Conduct Authority. This move marks an important step in CoinShares’ transformation into a full-service digital asset platform by significantly boosting its actively managed investment capabilities, which until now have been mostly centered on passive products such as exchange-traded products (ETPs).

Bastion, known for its systematic and market-neutral investment strategies in crypto assets, specializes in quantitative alpha generation aimed at institutional clients. Its arrival will bring a new dimension to CoinShares’ offerings, blending passive, beta-focused products with sophisticated actively managed funds. Such a combination offers investors a broader choice, enabling them to diversify digital asset exposure across a range of strategies tailored to different risk appetites and goals. CoinShares’ CEO Jean-Marie Mognetti emphasized that working alongside Bastion over the last year gave the firm confidence in Bastion’s track record and expertise in systematic digital asset investing. 

Bastion’s leadership will join CoinShares upon completion of the acquisition, including CEO and Co-Founder Philip Scott, who has over 25 years of experience in financial services, and Chief Investment Officer Fred Desobry, who brings 17 years of systematic investing and quantitative research expertise. Scott expressed optimism about scaling Bastion’s market-neutral strategy and expanding its investor base by leveraging CoinShares’ platform and global reach. The integration aims to accelerate the development of new alternative digital asset programs while broadening investor outreach. 

This acquisition is especially significant for CoinShares’ expansion in the United States. Bastion’s alpha-generating active management expertise combined with CoinShares’ registered Investment Advisor status under the Investment Company Act of 1940 enables the firm to offer actively managed crypto funds in the US market. This differentiates CoinShares from competitors that focus either solely on passive crypto exposure or operate purely as crypto infrastructure providers. Now, CoinShares is positioned to appeal to institutional investors looking for a comprehensive suite of digital asset products, from low-cost passive index-like products to higher-touch actively managed funds designed to navigate volatile crypto markets. 

The deal is still subject to approval by the UK Financial Conduct Authority, which Bastion is regulated under. Once finalized, Bastion’s strategies, team, and capabilities will be fully integrated into CoinShares’ existing digital asset management platform, creating a combined platform with a broader range of institutional-grade digital asset investment solutions. This acquisition aligns with CoinShares’ goal of becoming a global leader in digital asset management by offering diversified solutions encompassing the entire spectrum of digital asset investment. 

CoinShares has been a pioneer in digital assets since 2013, managing a broad range of crypto investment products and operating under regulatory oversight in Jersey, France, and the United States. The acquisition of Bastion enhances CoinShares’ position by adding capable expertise in actively managed quantitative strategies, a segment growing in demand as institutional investors seek alternatives beyond simple cryptocurrency exposure. With this strategic move, CoinShares aims to meet the increasing demand for sophisticated investment solutions in the rapidly evolving digital asset space. 

Adding Bastion’s market-neutral and systematic strategies complements CoinShares’ existing product range by offering potential risk-adjusted returns that do not rely solely on crypto market direction. This is particularly appealing in the often volatile cryptocurrency markets where institutional investors look to smooth returns and manage risk more actively. Bastion’s approach, combined with CoinShares’ scale and regulatory structure, provides a pathway for delivering innovative digital investment offerings both in Europe and the expanding US market. 

CoinShares’ acquisition of Bastion thus represents a significant evolution in the digital asset management industry’s maturation. It removes traditional silos between active and passive crypto investing, giving investors more comprehensive ways to access and manage digital assets. With Bastion joining the CoinShares platform, the firm is poised to serve a broader institutional investor audience seeking refined alpha strategies alongside established crypto exposures.