The crypto market is still struggling to find direction after a 2-month bear run. However, the institutional interest in crypto, which started early in the year, is only increasing. From venture rounds pushing crypto startups to billions of dollars in valuations to derivatives, institutions are getting more active in crypto.
The latest indication of big money moves in the crypto market is the purchase of Elwood Technologies by CoinShares. CoinShares is buying the crypto ETFs firm for $17 million. Elwood has been in operation since 2018 and is famed for giving investors exposure to crypto through ETFs. It now has assets under management of $1 billion.
The two firms have announced that the deal will be sealed today and will take the form of an equity swap. Through this swap, CoinShares will float an additional 1 298,322 shares at a price of $13.09. As part of the deal, the Elwood market research team will be incorporated into its new parent firm.
The deal comes just months after Elwood had started to move away from fund management and more towards software development, focusings on the crypto market. Through its technologies, companies such as fintech firms and fund managers can access and even trade in crypto by using just one API.
Such buyouts and tech developments point to a growing interest in crypto by big money and highly sophisticated investors. Other big players that are taking an interest in crypto include the likes of Square and Microstrategy. Microstrategy has been particularly active in this market and now has a Bitcoin portfolio that is now north of $3 billion.