Digital asset investment firm CoinShares has reported a notable dip in its first-quarter earnings for 2025, as turbulent macroeconomic conditions continue to shake the foundations of the broader crypto market. The company, which operates across both the United States and Europe, saw its net profit fall to $24 million, a sharp 42.2% decline compared to the same period in 2024.
While the firm remained in the black, profitability and operating margins both suffered amid a challenging financial landscape. For comparison, CoinShares had posted a net income of $41.5 million in Q1 2024, along with $35.5 million in EBITDA. In this latest report, EBITDA came in at $30 million, marking a 15.5% year-over-year decrease.
ETPs Offer Some Relief Amid Market Pressure
Despite the broader economic challenges, CoinShares’ exchange-traded products (ETPs) proved to be a source of relative strength during the quarter. The firm recorded $268 million in net inflows across its ETP offerings. The bulk of that—$202 million—came from its flagship Physical Bitcoin (BITC) ETP.
That boost helped lift revenue generated from assets under management (AuM), which rose from $24.5 million to $29.6 million, reflecting a 20.8% year-over-year increase. However, total AuM still declined, dropping 10.7% to $1.52 billion, as crypto prices weakened over the quarter.
CoinShares’ CEO, Jean-Marie Mognetti, addressed shareholders directly in the company’s earnings letter. He acknowledged that the challenges extended beyond routine market dips, describing them as signs of a “wholesale transformation of the global economic order.” In his view, the volatile environment isn’t just about shifting prices—it’s about deeper changes reshaping how markets behave.
Ethereum Dragged Down Performance
Ethereum’s weak performance during the quarter contributed significantly to the firm’s outflows. CoinShares’ Physical Staked Ethereum ETP (ETHE) saw $23 million in net redemptions, a major setback given Ether’s declining value during the period. Bitcoin, too, didn’t escape the market turbulence, falling 12.1%, which further eroded the firm’s asset base.
Wider Crypto Industry Also Feels the Squeeze
CoinShares isn’t the only crypto-focused firm feeling the pressure in Q1 2025. Early earnings reports from major players across the digital asset ecosystem suggest this has been a tough quarter industry-wide.
For instance, Coinbase reported a 10% drop in total revenue from the previous quarter. Its transaction revenue—the backbone of its business—fell 19%, settling at $1.3 billion. Meanwhile, Kraken also experienced a 7% revenue decline compared to Q4 2024.
Even institutional titans like Strategy (formerly MicroStrategy), renowned for their massive Bitcoin holdings, failed to meet Wall Street expectations. Bitcoin mining firms, such as Core Scientific, also posted weaker-than-expected results.
Global Events Add Fuel to the Fire
The broader financial markets have also been under strain. In particular, new global tariffs imposed by U.S. President Donald Trump rattled investor confidence and led to significant market sell-offs. Bitcoin dipped as low as $78,000, while Ether followed suit, falling to $2,640.
These macroeconomic tremors highlight the ongoing fragility of the digital asset space, even as institutional adoption grows. CoinShares, like many others in the sector, now faces the dual challenge of managing internal performance while navigating external shocks that are reshaping the crypto landscape in real time.
