CoinShares International Ltd. Faces Headwinds Amid Crypto ETF Outflows and Regulatory Uncertainty

CoinShares International Ltd., a Swedish‑listed provider of digital‑asset investment services, recorded a closing price of 152 SEK on 20 October 2025, positioning it below the 52‑week high of 165 SEK but comfortably above the 52‑week low of 47.25 SEK. With a market capitalization of 9.16 billion SEK and a price‑to‑earnings ratio of 8.08, the company remains a notable player in the global crypto‑investment landscape.

1. Significant ETF Outflows Hit the Company

On 20 October, Yahoo Finance reported that CoinShares was among the firms experiencing substantial net outflows from cryptocurrency exchange‑traded funds (ETFs). The article titled “Crypto ETFs post $513 million outflows after October 10 liquidity cascade: CoinShares” highlighted that the broader ETF market shed $513 million after the liquidity shock that followed the U.S. market turbulence on 10 October. CoinShares’ exposure to these funds translated into a noticeable erosion of assets under management, which in turn dampened revenue streams for the quarter.

The outflows were driven by a combination of market uncertainty triggered by political developments and a sharp correction in digital‑asset prices. CoinShares’ role as a custodian and manager for several crypto‑ETFs positioned it directly in the path of these withdrawals, underscoring the vulnerability of digital‑asset service providers to broader market sentiment.

2. Ripple (XRP) ETF Developments Keep CoinShares in the Spotlight

CoinShares is also a key applicant in the pending XRP ETF filings, alongside Grayscale, Bitwise, and WisdomTree. The regulatory environment surrounding the XRP ETF has been a roller‑coaster, with the U.S. government shutdown temporarily stalling the Securities and Exchange Commission’s review process. Several news outlets, including CoinCentral and CryptoTimes, have chronicled the potential acceleration of the approval timeline as the shutdown nears its resolution.

While the exact outcome remains uncertain, the anticipation of an XRP ETF approval is a double‑edged sword for CoinShares. On one hand, successful approval could unlock fresh capital and broaden the company’s product suite. On the other, the delay contributes to market volatility and may influence investor appetite for crypto‑ETFs more generally—an environment CoinShares must navigate carefully.

3. Broader Market Context: Bitcoin and Altcoin Flows

The same period saw notable activity in other cryptocurrency markets. Bitcoin traded near 108 000 USD as analysts weighed a potential rebound, while altcoins such as Solana, Ethereum, and XRP experienced a combined influx of nearly $435 million, driven by ETF‑related FOMO. Conversely, Bitcoin and Ethereum funds reported a combined outflow of $513 million last week, reflecting a shift in institutional sentiment.

These flows illustrate the interconnectedness of digital‑asset products: investor movements in one sector can ripple through to ETFs and custodian services like CoinShares. The volatility around Bitcoin’s support levels, particularly the 107 K threshold, has further amplified uncertainty for funds and service providers alike.

4. Strategic Implications for CoinShares

Given its exposure to ETF outflows and regulatory delays, CoinShares faces a multi‑faceted challenge:

  • Liquidity Management: The company must bolster its liquidity buffers to absorb sudden fund redemptions without compromising operational stability.
  • Product Diversification: Expanding beyond traditional ETFs into structured products, staking services, or other digital‑asset vehicles may mitigate concentration risk.
  • Regulatory Engagement: Active dialogue with the SEC and other regulators will be essential to expedite the XRP ETF review and to anticipate future compliance requirements.
  • Investor Communication: Transparent updates on fund flows, product performance, and regulatory milestones can help maintain investor confidence during periods of heightened market turbulence.

5. Outlook

CoinShares’ valuation—reflected in a price‑to‑earnings ratio of 8.08—suggests that market participants still recognize its potential as a digital‑asset service provider, albeit with caution. The near‑term outlook hinges on the resolution of the U.S. government shutdown, the pace of ETF approvals, and the broader recovery of crypto‑asset markets post‑October 10. If the XRP ETF gains traction and institutional confidence in crypto‑ETFs rebounds, CoinShares could turn current headwinds into a platform for growth. Until then, the firm will need to navigate a volatile landscape that balances regulatory uncertainty with opportunistic market dynamics.