CoinShares enters Europe’s UCITS market with Bitcoin mining ETF launch

CoinShares has entered Europe’s €26.3 trillion UCITS fund market with the launch of a regulated Bitcoin mining ETF, opening its digital asset strategies to institutional investors whose mandates previously restricted access to its products.

Digital asset investment firm CoinShares announced on Tuesday that it has launched a UCITS platform alongside the debut of the CoinShares Bitcoin Mining UCITS ETF, a move that allows the company to offer regulated investment funds under one of Europe’s most widely used fund structures.

The first product under the platform, the CoinShares Bitcoin Mining UCITS ETF, began trading on Deutsche Börse Xetra on Tuesday. The company said the launch is intended to make its investment strategies available to institutional investors across Europe, including pension funds, insurance companies, and private banks that generally invest through UCITS-compliant vehicles.

For CoinShares, the change is less about introducing a new investment strategy than removing a structural barrier that limited access to existing ones. The company said many institutional mandates prohibit investments in debt securities, including exchange-traded products backed by physical digital assets, preventing a large pool of investors from allocating capital despite growing interest in the sector.

By using the UCITS framework, CoinShares said those investors can now access regulated digital asset investment products through a structure already accepted under their internal investment rules.

“This is not simply the launch of another investment product. It marks our entry into the UCITS market with a platform that allows us to develop and launch regulated investment funds under one of the world’s most widely recognised fund frameworks,” said CoinShares co-founder, president and CEO Jean-Marie Mognetti.

The company added that the platform operates on a largely fixed cost base and is designed to generate operating leverage as additional funds are introduced. It also said the UCITS structure will support future launches covering both digital asset products and thematic investment strategies.

Platform targets regulated institutional capital

UCITS, short for Undertakings for the Collective Investment in Transferable Securities, is the European regulatory framework governing investment funds that can be marketed across member states. Because many institutional investors already allocate capital through UCITS funds, the structure has become one of the region’s standard formats for cross-border investment products.

CoinShares said adopting the framework allows it to reach investors that previously could not participate because of mandate restrictions rather than a lack of interest in digital assets.

The company’s latest annual report also points to a period of financial expansion. CoinShares generated more than $165.7 million in revenue during 2025, its first full year after listing in the United States earlier this year. Shares of the Nasdaq-listed company closed 2.1% lower at $4.11 on Monday before the announcement.

Against that backdrop, the UCITS platform gives CoinShares a regulated framework that aligns with existing investment mandates instead of requiring institutions to modify internal policies before gaining exposure to digital asset strategies.

The company said it intends to build on that foundation by introducing additional regulated funds over time as institutional demand for digital asset investment products continues to develop.

The launch also follows several initiatives by CoinShares to deepen its presence in institutional markets beyond exchange-traded crypto products.

Earlier this year, the company published research showing that many traditional wealth managers still struggle to incorporate clients’ digital asset exposure into portfolio management because of internal compliance rules.

A June survey conducted by CoinShares among 261 wealth management professionals across Europe found that 52% of UK financial advisers said most of their clients’ cryptocurrency holdings remained outside their visibility. Across France, Germany, Italy and Switzerland, the figure fell to 25%.

The same survey found that 61% of respondents worked at firms that either restricted digital assets or had no formal policy governing them.

At the time, Mognetti argued that internal firm policies, rather than adviser knowledge or client demand, had become the primary obstacle. According to him, many advisers cannot account for crypto holdings when managing portfolios because company rules prevent them from discussing or supervising those assets, leaving them without a complete view of client wealth.

CoinShares said such restrictions create operational challenges because advisers are expected to manage portfolios while lacking visibility into part of their clients’ investments.

Institutional adoption continues to evolve

Institutional participation in digital assets has remained uneven over the past several months as investment flows responded to changing market conditions.

In a June research report based on U.S. Securities and Exchange Commission 13F filings, CoinShares said hedge funds reduced their exposure to U.S. spot Bitcoin exchange-traded funds by 39% during the first quarter. The report showed professional investors lowered combined holdings from approximately 313,000 BTC to 261,000 BTC after Bitcoin declined sharply during the period.

According to CoinShares digital asset analyst Matt Kimmell, the reduction resembled previous Bitcoin downturns, when leveraged and tactical investors typically trimmed positions as prices weakened.

The same report also showed different behavior across institutional groups. While hedge funds and brokerages reduced exposure significantly, banks increased their Bitcoin ETF holdings during the quarter, suggesting not all professional investors responded to market volatility in the same way.

Alongside market developments, European regulation has continued to shape how investment firms package crypto-related products for institutional clients.