Crypto Shops Keep Inking Deals, Bear Market or Not

Key Takeaways

European asset manager CoinShares, best known for its crypto ETFs, listed under the ticker "CSHR" on the Nasdaq after merging with a blank-check company. U.S. asset manager Franklin Templeton announced its acquisition of CoinFund spinoff 250 Digital and the launch of a new crypto-specific unit called Franklin Crypto.

Crypto is for closers, bear market or not.

Though coin prices have been almost cut in half since reaching record highs in October, crypto shops are still cutting deals and landing on major U.S. exchanges. CoinShares, a European asset manager best known for their crypto ETFs, is the latest newcomer to the Nasdaq Exchange, listing under the ticker "CSHR" on Wednesday after closing its deal with blank-check company Vine Hill Capital. Shares closed 1.3% lower at $8.61.

Companies try to time their public debuts when market vibes are good, which hasn't been the case lately given the warring in the Middle East. CoinShares CEO and co-founder Jean-Marie Mognetti told CNBC in an interview that U.S. stock performance wasn't a factor in their decision: "We are not listing because the market is easy, we are listing because the business is ready for it."

WHY THIS MATTERS TO YOU

Crypto firms are proliferating on U.S. stock exchanges though coin prices have hit the skids.

Separately, U.S. asset manager Franklin Templeton, a part of Franklin Resources (BEN), said it agreed to acquire 250 Digital, a crypto investment management firm spun off from CoinFund management. The deal would include 250 Digital's investment team and its crypto strategies previously run by CoinFund, which would make up Franklin Templeton's newly formed Franklin Crypto unit. Shares of Franklin Resources closed little changed.

Recently announced deals are pointed at money management, suggesting digital asset firms still see opportunities to make inroads in traditional finance, or what they call "TradFi."

Other crypto companies are waiting in the wings to go public, even as already-public crypto-linked businesses—pummeled through the first quarter—have made moves to expand beyond digital assets.

Abra Financial Holdings, a crypto wealth management platform, last month said it agreed to merge with blank-check company New Providence Acquisition Corp III (NPACU). It is expected to list on the Nasdaq after the deal closes under the symbol "ABRX."

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