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European crypto investor CoinShares reports sharp drop in 2022 income

Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on PC motherboard in this illustration taken

By Elizabeth Howcroft

LONDON (Reuters) - European crypto asset manager CoinShares blamed market turbulence for a 97% fall in full-year income and said it lost 26 million pounds ($31 million) in the collapse of major exchange FTX, CoinShares said on Tuesday.

The crypto market plummeted in 2022, as rising rates and a series of bankruptcies at high-profile crypto firms prompted investors to ditch risky crypto assets.

CoinShares' "total comprehensive income", a measure which includes expected losses, fell to 3 million pounds in 2022 from 113.4 million in 2021, its fourth quarter earnings report showed.

CoinShares had previously said it had around $30 million worth of crypto assets stuck on FTX, which froze customer withdrawals in November before filing for bankruptcy.

"The collapses and frauds that plagued the industry in 2022 have brought a newfound sense of caution to the market, with investors now seeking trusted, regulated institutional players," said CoinShares CEO Jean-Marie Mognetti.

CoinShares describes itself as Europe's biggest digital asset investor and trading group, with 1.4 billion pounds of assets under management at end-2022.

($1 = 0.8339 pounds)

(Reporting by Elizabeth Howcroft, editing by Sinead Cruise and Jason Neely)