While other hedge funds decided to shut down after being hit by the FTX debacle, some managed to survive and stay afloat after weathering the challenges brought on by the stock market crash.
In its Q4 2022 report, institutional crypto fund manager CoinShares highlighted the company remained "financially strong" despite dealing with the collapse of FTX at the end of the year. The fund also presented its achievements, such as its graduation in the Nasdaq of Stockholm primary market and strong entry levels into CoinShares' physical exchange-traded products.
1/ Amid challenging market conditions, CoinShares has remained financially strong, with strong entry levels into physical CoinShares ETPs recorded in the fourth quarter. We are proud to have graduated from Stockholm's premier Nasdaq exchange, a testament to the hard work and dedication of our team.
โ CoinShares (@CoinSharesCo) February 21, 2023
CoinShares Said More Than $31 Million In Assets Were Trapped On The FTX Exchange after your bankruptcy filing. The fund manager is not sure if he will ever be able to recover the funds or how much of the assets can be recovered.
During the quarter, the company also made the decision to shut down its CoinShares consumer platform. The firm wrote:
"Market conditions created a situation that did not allow us, with our existing capital structure, to support a consumer business that required a significant upfront investment in marketing."
CoinShares CEO Jean-Marie Mognetti also wrote that FTX's bankruptcy "had a significant impact" on the company's ability to implement its algorithmic trading platform, HAL, in Europe. Despite this, Mognetti also wrote that the company would enter 2023 with clear goals, such as focusing on expanding its digital asset management business and institutional offerings.
Related: US Regulatory Crackdown Leads to $32M Digital Asset Outflows: CoinShares
While CoinShares managed to weather the FTX storm, hedge fund Galois Capital was not so lucky. On February 20, the fund told investors it was closing its operations due to the losses suffered from the collapse of FTX. The company decided to return its remaining funds to its investors and sell its rights to buyers more capable of filing for bankruptcy.
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