CoinShares (Nasdaq First North Growth Market: CS), the largest digital asset investment firm in Europe with $ 3.7 billion in assets under management, as of May 27, 2021, recently revealed that it has invested in Viridi Fund (Viridi), an “emerging” fund manager.
CoinShares management has indicated that it will take on an advisory role for Viridi, which will introduce the first ESG (environmental, social, governance) crypto-mining product in the United States.
As mentioned in a statement shared with CI, this latest investment marks CoinShares’ most recent strategic ESG investment, and the company’s role as advisor to Viridi calls on its experienced management team “to help bring a new product to the table. innovative in the American market. “
As stated in the announcement, exchange-traded products (ETPs) are ‘at the heart’ of CoinShares business, and ETP asset management revenue ‘accounted for 40% of CoinShares’ revenue in the first quarter, generating 24% of CoinShares’ revenue in the first quarter. million dollars (£ 17 million) in income for the three months. ended March 31, 2021. “
The press release also mentioned that ESG products are now a growing category in international asset management. At the end of last year, global ESG assets “stood at $ 38 trillion and are on track to surpass $ 53 trillion by 2025,” the announcement revealed.
The statement further noted that demand from European investors has “historically dominated the market for ESG-focused investments”. U.S. products could potentially bring the “next wave of organic expansion,” the announcement notes while adding that as investor demand for ESG mandates grows, fund managers and investment firms alike. types will continue to evolve their portfolios “to bring these innovative new products to market.” . “
As mentioned in the version of CoinShares:
“In recent months, cryptocurrencies have received significant media scrutiny regarding their energy use, but the facts just don’t match the narrative. CoinShares Research has found that over 70% of bitcoin mining is done with renewable energy. On the flip side, the Cambridge Center for Alternative Finance (CCAF) has estimated the figure to be closer to 39%, which means bitcoin’s share in renewables is almost double that of the US energy grid.
The announcement also noted:
“Through its investment arm, CoinShares Ventures, the company has launched an initiative to actively seek and fund companies involved in creating sustainable mining infrastructure, including recent investments in Compass Mining and MintGreen. This strategic investment in Viridi will further extend CoinShares’ market leadership in this area and allow the company to meet the appetite of emerging customers for these types of products. “
Meltem Demirors, CSO at CoinShares, said he believes in a proactive approach to identify dominant market trends. Demirors added that this collaboration with Viridi Funds is in line with their goal “to advance the concept of sustainability globally and to provide innovative and forward-thinking investment vehicles that make digital assets accessible to individuals and businesses. institutions ”.
“I am delighted to bring our years of experience in exchange traded products and financial markets to this new product family and look forward to working closely with Wes and the Viridi team to bring ESG products. in the US market and beyond. ”
With the help of Luxor Technologies, Viridi aims to combine advanced knowledge of crypto-mining economics and public markets “with proprietary valuation and hashing principles to fuel a fundamentals-based investment strategy.”
Viridi “will target investments in global crypto-mining operations with leading ESG properties, material efficiency and operational expertise.”
Wes fulford, CEO of Viridi Funds, said:
“Our team is delighted to welcome CoinShares as an investor and advisor. At Viridi, we are focused on delivering a positive and tangible impact on the global crypto mining markets through an active investment strategy that will help operators become greener. This is an important and necessary step for the massive adoption of cryptocurrency. “
For more information on the Viridi funds and their launch, click here.