Untitled

CoinShares Digital Securities Limited

A

udited financial statements for the year ended 31 December 2022

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Audited financial statements

For the year ended 31 December 2022

Contents

Page

Company Information

For the year ended 31 December 2022

The Company

Registered Numbe

r

127061

Registered Office 2nd Floo

r

2 Hill Street

St Helie

r

Jerse

y

JE2 4U

A

Directors Jeri-Lea Brown

Stuart Pinnington

Kirsty Lawrence (appointed 28 October 2022)

Townsend Lansing Jr. (appointed 28 October 2022)

Benjamin Gilbert (resigned 20 October 2022)

Company Secretar

y

Independent Audito

r

Baker Tilly Channel Islands Limited

PO Box 437

1st Floor, Kensington Chambers

46-50 Kensington Place

St Helie

r

Jerse

y

JE4 OZE

Barclays Bank PLC.

13 Library Place,

St Helie

r

Jerse

y

JE4 8NE

CoinShares Corporate Services (Jersey) Limited

Bank

CoinShares Digital Securities Limited

Page 1

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

CoinShares Digital Securities Limited

Directors' Report

For the year ended 31 December 2022

Incorporation

The Company is incorporated, domiciled and tax resident in Jersey, Channel Islands.

Principal activity

Group structure

Review of operations

The directors present their report and the financial statements of CoinShares Digital Securities Limited (the 'Company') for the

year ended 31 December 2022.

The principal activity of the Company is to act as an issuer of exchange traded products ('ETPs'). These ETPs, collectively

referred to as Digital Securities, are non-interest bearing, secured, undated, limited recourse debt securities that are fully

secured by the holdings of the digital assets underlying each ETP. Digital Securities are listed on several stock exchanges

and Multilateral Trading Facilities.

Digital Securities do not have a fixed maturity. A Digital Security holder can sell the product. on the regulated market on which

it is listed, or in accordance with (and subject to) the terms. of the Prospectus, may redeem the securities directly with the

Issuer in return for an amount of underlying digital assets equal to the aggregate Coin Entitlement of the Digital Securities

(less relevant fees and costs) or, in certain limited circumstances, for an amount in US dollars equal to the net proceeds of

sale of the aggregate Coin Entitlement (less relevant fees and costs). The Issuer may, at any time, determine that all Digital

Securities are to be redeemed compulsorily in accordance with (and subject to) the terms of the Prospectus.

The Company currently has 13 ETPs in issuance referencing individual digital currencies. Seven of those ETPs allow

investors to share in staking rewards that are earned when the Company uses the digital currencies underlying those ETPs to

participate in staking on the underlying digital currency protocol (the 'Staking Classes').

The Company belongs to a group of companies, the ultimate holding entity of which is CoinShares International Limited,

incorporated in Jersey, Channel Islands ('CSIL' and such group, the 'Group'). The Companys share capital consists of 10,000

fully-paid shares of £0.01 each, all of which are held ultimately by CSIL, which accordingly controls the Company.

CSIL has an audit committee that complies with international corporate governance rules.

2022 was a disappointing year for the digital asset market. Against market turmoil and major insolvencies, the digital asset

space saw a decreasing amount of institutional and retail interest, coupled with diminishing liquidity. Prices fell dramatically in

the first half of 2022 and have stabilised but not recovered.

CoinShares International

Limited

CoinShares Digital Securities

Limited

100%

Page 2

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Directors' Report (continued)

For the year ended 31 December 2022

Review of operations (continued)

Key performance indicators

Digital assets

31 Decembe

r

31 Decembe

r

31 Decembe

r

2022 2021 2022

Number Number £

By Currenc

y

Bitcoin 10,351 8,253 142,828,745

Ethereum 75,386 56,877 75,435,400

Litecoin 41,455 31,105 2,419,356

XRP 16,967,728 3,179,439 4,846,955

Polkadot 279,238 - 1,016,188

Tezos 2,355,697 - 1,419,274

Cardano 8,474,941 - 1,766,299

Solana 1,139,161 - 9,554,260

FTX Token - - -

Chainlink 70,881 - 329,500

Uniswap 90,209 - 385,011

Cosmos 104,654 - 818,359

Mati

c

2,003,812 - 1,279,145

A

lgorand 17,355,131 - 2,543,340

48,968,644 3,275,674 244,641,832

Future developments

The obligation represented by the Companys Digital Securities (and the corresponding AUM amount) has decreased

significantly over the course of 2022, falling 46% to finish at £244 million. This decrease has been driven by the decrease in

the market value of the digital currencies underlying the Digital Securities.

Despite these headwinds, the Company was able to launch 10 new ETPs in 2022 and saw strong net inflows of £232 million.

During the year, the Company launched a CoinShares Physical FTX Token ('CFTT') Digital Security offering investor exposure

to FTX Token ('FTT'), the native token to the FTX digital asset exchange. As a result of FTX entering Chapter 11 bankruptcy

in November 2022 and resultant volatility surrounding FTT, the Company suspended creations in CFTT on 14 November 2022

and suspended all redemptions in CFTT on 18 November 2022. On 19 December 2022 all outstanding CFTT were

compulsorily redeemed for approximately $0.10 each, and distributed to ETP holders. Additionally, the CFTT seed was

redeemed and the resulting FTT was transferred to CoinShares Capital Markets (Jersey) Limited ('CSCMJL') in full.

On 15 September 2022, the Ethereum blockchain transitioned from a Proof-of-Work mechanism to a Proof-of-Stake

mechanism ('the Merge'). Prior to the completion of the Merge a forked version of the Ethereum blockchain that continued

using the Proof-of-Work consensus was created ('ETHW') and distributed to holders of Ethereum. The Company sold the

ETHW received, in exchange for Ethereum, and distributed the additional Ethereum pro rata to holders of the CoinShares

Physical Ethereum Digital Security through an increase to the coin entitlement.

CoinShares Digital Securities Limited

456,981,360

-

Refer to note 7 Digital assets for further details.

The Directors expect the present level of activity to be sustained for the foreseeable future and to continue issuing new Digital

Securities.

-

2021

31 Decembe

r

1,978,176

3,451,251

158,753,330

292,798,603

£

-

Page 3

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Directors' Report (continued)

For the year ended 31 December 2022

Risks and uncertainties

Coronavirus disease (COVID-19)

Impact of Russian-Ukraine event

Other financial risks

Market risk

On 24 February 2022 Russia initiated military actions in Ukraine (the 'Crisis'), resulting in the implementation of sanctions and

other government actions. These, along with the Crisis itself, have had an impact on financial and commodities markets.

Directors closely monitor and assess the impact on the Company's portfolio operations and valuation.

The market value of Digital Assets is not tied to any particular company, government, or tangible asset. Instead, the valuation

of these assets relies on future expectations regarding the network's value, transaction volume, and overall asset usage.

Consequently, a substantial portion of the value in Digital Assets is speculative, which can result in heightened volatility.

Investors may encounter significant gains or losses based on the valuation of Digital Assets.

Given the speculative nature of investing in Digital Assets, their prices are prone to fluctuation for various reasons, and such

fluctuations may be unpredictable. The volatile nature of these assets means that their prices can experience fluctuations

without any discernible pattern or foreseeable cause. Therefore, investors should be prepared for potential price swings and

the associated financial risks when engaging in Digital Asset investments.

The following sets out a description of the principal risks inherent in the activities of the Company along with the action taken

to manage these risks.

CoinShares Digital Securities Limited

The Directors continue to actively monitor the advice and developments regarding COVID-19. The CoinShares Group has

implemented and will continue to implement measures to ensure the ongoing safety and well-being of our employees while

maintaining normal business operations.

Currency risk: The Company seeks to mitigate currency risk by only receiving enough fees from

CoinShares (Jersey) Limited ('CSJL') to cover expenses, and not receiving the management fee

directly. On the basis of the above information, the Company believes currency risk is not material.

Interest rate risk: Interest rate risk is the risk that the value of the Company will be impacted by

fluctuations in the prevailing levels of market interest rates. The majority of the Company's financial

assets and liabilities are either non-interest bearing, or at a fixed interest rate and as a result, the

Company is not subject to significant amounts of risk due to fluctuations in the prevailing levels of

market interest rates.

Digital asset price risk: Digital assets are an extremely volatile asset class. Digital asset price risk

arises from the uncertainty about future prices of the digital assets, impacting both the fair value of the

digital assets held by the Company and the fair value of the liabilities of the Company towards security

holders. To mitigate its exposure to changes in prices of digital assets, any exposure to changes in

prices on the digital assets held is matched by the changes in value of the obligations to security

holders.

Capital risk management: The capital of the Company is represented by the net assets attributable to

ordinary shareholders. The Company's objective when managing capital is to safeguard the Company's

ability to continue as a going concern in order to provide returns for shareholders and benefits for other

stakeholders and to maintain a strong capital base to support the development of the investment

activities of the Company. This is achieved through actively managing the Company's products.

Page 4

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Directors' Report (continued)

For the year ended 31 December 2022

Risks and uncertainties (continued)

Operational risk

CoinShares Digital Securities Limited

Credit risk

Liquidity risk

These are risks relating to losses as a result of operational matters such as having inappropriate or

insufficient routines, human error, systems failures and legal risks.

The main operational risk for the Company would be the inability to redeem a security through either

systems failures or continuity planning issues. The risk is mitigated through the use of a business

continuity plan which has been tested, and demonstrated that the traders can perform their work from

anywhere.

The risk of hacking, and losing digital assets in digital wallets due to fraud is reduced through the

majority of the digital assets being kept in cold storage with Komainu, who have a SOC 1 Type 2 report.

The latest SOC 1 Type 2 Report, covering the period 1 January 2021 to 30 November 2021, was

independently reviewed by PricewaterhouseCoopers CI LLP and authorised for issue of 19 August

2022. A SOC 1 Type 2 Report covering Komainu's control framework in 2022 is in progress. In addition

to limiting the exposure to fraud for the Company, cold storage of digital assets with Komainu also

reduces the Company's exposure to hacking.

The cyber risks are mitigated through the use of systems to prevent external attacks (such as, but not

limited to, firewalls, detection of possible phishing emails, encryption using secure keys and strong

physical security). Komainu, as custodian, are subject to periodic reviews. The risk of theft of the

Company's custodied coins is considered minimal owing to the strong control framework built around

the storage and transfer of Digital Assets.

Liquidity risk is the risk that the Company will encounter difficulties in meeting obligations associated

with financial liabilities, in particular towards security holders. Liquidity issues could arise as a result of

the redemption of securities. In this case, the Company would be required to have sufficient liquidity to

finance the redemption of the securities. The prospectus and final terms for each security define the

formula at which the securities can be redeemed based on a coin entitlement.

Securities holders can request redemption of their securities which will be settled two business days

following a valid redemption notice. The Company it is required holds the relevant digital asset at all

times to be able to meet these redemptions. The Directors believe that the risk is adequately mitigated

and therefore no sensitivity analysis is required.

Credit risk is the risk that an issuer or counterparty will be unable or unwilling to meet a commitment

that it has entered into with the Company. Digital asset activity has an inherent credit risk due to the

nature of the industry, which is non-regulated, extremely volatile, has low barriers to entry and is

vulnerable to bad actors.

Credit risk from balances with custodians, banks, brokers and financial institutions is managed,

monitored and controlled by the finance department in accordance with the Company policy. It is the

Company's policy to only enter into transactions with reputable counterparties, as determined through

appropriate due diligence.

The risk of losing Digital Assets in digital wallets due to fraud is reduced through digital assets being

kept in cold storage with Komainu, providing a cold storage vault. The Company does not expect to

incur material credit losses in respect of digital assets.

Page 5

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Directors' Report (continued)

For the year ended 31 December 2022

Risks and uncertainties (continued)

Results and dividends

Company law requires the directors to prepare financial statements for each financial period. Under that law, the directors

have elected to prepare the financial statements in accordance with applicable law and International Financial Reporting

Standards as adopted by the European Union ('IFRS') which comprise Standards and Interpretations approved by the

International Standards Board. Under company law the directors must not approve the financial statements unless they are

satisfied that they give a true and fair view of the state of affairs of the Company as at the end of that period, and of the profit

or loss of the Company for that period.

The directors are responsible for keeping proper accounting records that are sufficient to show and explain the Company's

transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to

ensure that the financial statements comply with the Companies (Jersey) Law 1991, as amended. They are also responsible

for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities. The directors confirm the statements comply with these requirements.

The total comprehensive income for the year amounted to £nil (2021: £76,636).

The directors are responsible for preparing the Directors' Report and financial statements in accordance with applicable laws

and regulations.

 select suitable accounting policies for the Company's financial statements and then apply them consistently;

 make judgements and estimates that are reasonable and prudent;

The directors do not recommend the payment of a dividend for the year (2021: £nil).

 state whether applicable accounting standards have been followed, subject to any material departures disclosed and

explained in the financial statements; and

In preparing these financial statements, the directors are required to:

Climate risk

Climate change risks pose significant threats to many businesses, including those engaged in the

issuance of ring-fenced Digital Securities listed on stock exchanges. The Company's primary activity

revolves around issuing multiple series of Digital Securities, which are susceptible to wide fluctuations

in value. Various factors beyond the Company's control, such as global or regional political conditions,

economic fluctuations, financial instability, regulatory changes, judicial events, and climate risk, can

influence the market price of the underlying Digital Assets.

The directors of the Company hold the opinion that climate risk is already incorporated into the pricing

of the underlying Digital Assets. They do not view climate risk as a distinct and separate significant risk

to the Company itself. This stance is based on the understanding that any fluctuations in the value of

the underlying digital assets, which the Company holds at fair value through profit or loss, will be

shouldered by the holders of the Digital Securities. In other words, the Company believes that the risk

associated with climate change is ultimately borne by the investors in the Digital Securities.

CoinShares Digital Securities Limited

Refer to note 15 'Risk management' for further details.

Statement of Directors responsibilities

 prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will

continue in business.

So far as the directors are aware, there is no relevant audit information of which the Company's auditor is unaware, and each

director has taken all the steps he or she ought to have as a director in order to make himself or herself aware of any relevant

audit information and to establish that the company's auditor is aware of that information.

Page 6

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Directors' Report (continued)

For the year ended 31 December 2022

Going concern

Comparative information

Corporate Governance Statement

Independent Auditor

The directors holding office at the end of the reporting period had no direct interests in the share capital of the Company but

did have an interest in the ultimate parent company, CSIL.

The report was approved by the board of directors on 17 July 2023 and signed on its behalf by:

CoinShares Digital Securities Limited

..........................................................

CoinShares Corporate Services (Jersey) Limited

Company Secretary

The Company belongs to CSIL, a Jersey, public limited liability company whose shares are listed for trading on Nasdaq

Stockholm. The Corporate Governance framework for CoinShares International Limited is grounded in the Companys Articles

of Association, Companies (Jersey) Law 1991, as amended, the Code, Nasdaq Rulebook for Issuers of Shares (the Main

Market Rulebook), and the Companys internal rules and guidelines. Further details regarding Corporate Governance applied

to the Company can be found on the CoinShares International Limited website.

Baker Tilly Channel Islands Limited has expressed its willingness to continue in office.

The Company has net assets of £nil (2021: £nil) at the end of the reporting period. All expenses of the Company are settled by

CSJL through the issuance of fees to CSJL to cover the Company's expenses as agreed in the Service Level Agreement

dated 21 May 2021. The directors have prepared these financial statements on a going concern basis due to CSJL's

contractual obligation to cover the Company's expenses, and ongoing financial support received from other Group entities,

inclusive of its parent company, which will continue to be provided for the foreseeable future.

In preparing the financial statements the directors made an assessment of the Company's ability to continue as a going

concern. In assessing whether the going concern assumption is appropriate the directors considered all available information

about the future, which is at least, but is not limited to, twelve months from the date when the financial statements were

authorised for issue.

When making the assessment the directors considered and disclosed all material uncertainties related to events or conditions

that cast significant doubt upon the Company's ability to continue as a going concern.

There is continuing to be increased volatility seen in the price of digital assets. The directors do not consider the price

movements to impact the going concern for the Company as the products are fully hedged.

There has been no change to the previously audited figures. In 2021, the directors elected to amend the accounting period

end to 31 December in order to align the Company with the rest of the Group, as a result certain comparable financial

information presented in these financial statements has not been audited in the format presented.

Directors' interest in shares

Directors and Company Secretary

The directors and company secretary who served during the year and up to the date of this report are listed on page 1.

Page 7

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Global Statement for the Financial Statements

For the year ended 31 December 2022

Global Statement for the Financial Statements

Director

I certify that, to the best of my knowledge, the financial statements have been prepared in accordance with the applicable

accounting standards and give a true and fair view of the assets, financial position and performance of the Company and that

the Director's report attached presents a true and fair view of the development of the business, the performance and the

financial position of the Company and that it describes the main risks and uncertainties it faces.

Date: 17 July 2023

CoinShares Digital Securities Limited

Townsend Lansing Jr.

Page 8

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Independent auditor’s report

To the Members of CoinShares Digital Securities Limited

Opinion

We have audited the financial statements of CoinShares Digital Securities Limited (the “Company”)

which comprise the statement of financial position as at 31 December 2022, and the statement of

comprehensive income, statement of changes in equity and statement of cash flows for the year then

ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements:

 give a true and fair view of the financial position of the Company as at 31 December 2022,

and of its financial performance and its cash flows for the year then ended in accordance with

International Financial Reporting Standards as adopted by the European Union (IFRSs); and

 have been prepared in accordance with the requirements of the Companies (Jersey) Law

1991, as amended.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs) and

applicable law. Our responsibilities under those standards are further described in the Auditor’s

Responsibilities for the Audit of the Financial Statements section of our report. We are independent of

the Company in accordance with the ethical requirements that are relevant to our audit of the financial

statements in Jersey, including the FRC’s Ethical Standard, and we have fulfilled our other ethical

responsibilities in accordance with these requirements. We believe that the audit evidence we have

obtained is sufficient and appropriate to provide a basis for our opinion.

Other Matter

The statement of comprehensive income and statement of cash flows for the year ended 31

December 2021 were unaudited, this was due to a change in the financial year-end reporting date to

align with the Group’s financial reporting date as disclosed in Note 2.1.

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in

our audit of the financial statements of the current period and include the most significant assessed

risks of material misstatement (whether or not due to fraud) identified by us, including those which

had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and

directing the efforts of the engagement team. These matters were addressed in the context of our

audit of the financial statements as a whole, and in forming our opinion thereon, and we do not

provide a separate opinion on these matters.

Key audit matte

r

The Risk

How our audit addressed

the matter

Digital assets – Existence,

Rights and Obligations

 Total value; £244,641,832

(2021: 456,981,360)

 As disclosed in Note 7.

There is a risk that the financial

statements may be materially

misstated due to;

 the digital assets not being

owned by the company; and

 The rights and the rewards not

being appropriately transferred

to the company; and

Our audit procedures with

respect to Digital assets

included but were not limited

to:

 Walkthroughs to gain an

understanding of the

Company’s internal control

for digital assets including

additions and disposals.

 Confirmations obtained

from the custodian and

exchanges with which the

digital currency is held.

 Test of detail on a sample

of additions and disposals,

we agreed this to

appropriate supporting

documents.

We have no findings to

report.

Our Application of Materiality

Materiality for the financial statements as a whole was set at £31,000 (PY: £10,400), determined with

reference to a benchmark of total expenses, of which it represents 1.5% (PY: 1.8%).

In line with our audit methodology, our procedures on individual account balances and disclosures

were performed to a lower threshold, performance materiality, so as to reduce to an acceptable level

the risk that individually immaterial misstatements in individual account balances add up to a material

amount across the financial statements as a whole.

Performance materiality was set at 60% (PY: 60%) of materiality for the financial statements as a

whole, which equates to £18,000 (PY: £6,240). We applied this percentage in our determination of

performance materiality because the entity is deemed a high risk.

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Conclusions relating to Going Concern

In auditing the financial statements, we have concluded that the Directors’ use of the going concern

basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to

events or conditions that, individually or collectively, may cast significant doubt on the Company’s

ability to continue as a going concern for a period of at least twelve months from when the financial

statements are authorised for issue.

Our responsibilities and the responsibilities of the Directors with respect to going concern are

described in the relevant sections of this report.

Other Information

The other information comprises the information included in the annual report other than the financial

statements and our auditor's report thereon. The Directors are responsible for the other information

contained within the annual report. Our opinion on the financial statements does not cover the other

information and, except to the extent otherwise explicitly stated in our report, we do not express any

form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or

our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If

we identify such material inconsistencies or apparent material misstatements, we are required to

determine whether this gives rise to a material misstatement in the financial statements themselves.

If, based on the work performed, we conclude that there is a material misstatement of this other

information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to Report by Exception

In the light of the knowledge and understanding of the Company and its environment obtained in the

course of the audit, we have not identified material misstatements in the Directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies

(Jersey) Law 1991, as amended, requires us to report to you if, in our opinion:

 proper accounting records have not been kept;

 proper returns adequate for the audit have not been received from branches not visited by us;

 the financial statements are not in agreement with the accounting records and returns; and

 we have not obtained all information and explanation that, to the best of our knowledge and

belief, was necessary for the audit.

Responsibilities of the Directors

As explained more fully in the Directors’ Report set out on page 2, the Directors are responsible for

the preparation of financial statements that give a true and fair view in accordance with IFRSs, and for

such internal control as the Directors determine is necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Company’s

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and

using the going concern basis of accounting unless management either intends to liquidate the

Company or to cease operations, or has no realistic alternative but to do so.

The Directors are responsible for overseeing the Company’s financial reporting process.

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole

are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report

that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee

that an audit conducted in accordance with ISAs will always detect a material misstatement when it

exists. Misstatements can arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic decisions of users taken on

the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed

below:

 Enquiry of management to identify any instances of non-compliance with laws and

regulations, including actual, suspected or alleged fraud;

 Reading minutes of meetings of the Board of Directors;

 Review of legal invoices;

 Review of management’s significant estimates and judgements for evidence of bias;

 Review for undisclosed related party transactions;

 Using analytical procedures to identify any unusual or unexpected relationships; and

 Undertaking journal testing, including an analysis of manual journal entries to assess whether

there were large and/or unusual entries pointing to irregularities, including fraud.

A further description of the auditor’s responsibilities for the audit of the financial statements is located

at the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities.

This description forms part of our auditor’s report.

Other Matters which we are Required to Address

We were appointed by board of directors on 11 August 2021 to audit the financial statements. Our

total uninterrupted period of engagement is 3 years.

The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Company

and we remain independent of the Company in conducting our audit.

Our audit opinion is consistent with the additional report to the audit committee in accordance with

ISAs.

Use of this Report

This report is made solely to the Members of the Company, as a body, in accordance with Article

113A of the Companies (Jersey) Law 1991, as amended. Our audit work has been undertaken so that

we might state to the Members those matters we are required to state to them in an auditor's report

and for no other purpose. To the fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than the Company and its Members, as a body, for our audit work, for

this report, or for the opinions we have formed.

Ewan Spraggon

For and on behalf of Baker Tilly Channel Islands Limited

Chartered Accountants

St Helier, Jersey

Date: 17 July 2023

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Statement of Comprehensive Income

For the year ended 31 December 2022

Unaudited

1 January 2022 to 1 January 2021 to

31 December 2022 31 December 2021

Note

££

Revenue 4 2,101,877 1,220,116

Gross profit 2,101,877 1,220,116

Administration expenses 5 (2,094,339) (1,140,337)

Fair value loss on digital assets 7 (302,608,417) -

Loss on digital asset receivables 9 (151,082) -

Gain/(loss) on ETP liabilities 11 429,278,798 (127,849,591)

Gain on digital asset payables 13 1,285,223 45,069

Loss on foreign exchange (7,538) (3,143)

Operating profit/(loss) 127,804,522 (127,727,886)

Profit/(loss) before taxation 127,804,522 (127,727,886)

Taxation on profit/(loss) 6 - -

Profit/(loss) after taxation 127,804,522 (127,727,886)

7 (127,804,522) 127,804,522

Other comprehensive (loss)/income (127,804,522) 127,804,522

Total comprehensive income - 76,636

The above should be read in conjunction with the accompanying notes on pages 17 to 35 which form an integral part of these

financial statements.

CoinShares Digital Securities Limited

All items dealt with in arriving at the result for the years ended 31 December 2022 and 31 December 2021 relate to continuing

operations.

Fair value (loss)/gain on digital assets

Page 13

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Statement of Financial Position

As at 31 December 2022

As a

t

As a

t

31 December 2022 31 December 2021

Note

££

ASSETS

Current assets

Digital assets 7 244,641,832 456,981,360

Trade and other receivables 8 676,922 99,288

Digital asset receivables 9 50,015 -

Cash and cash equivalents 10 4,940 4,970

Total assets 245,373,709 457,085,618

LIABILITIES

Current liabilities

ETP liabilities 11 244,043,894 456,835,433

Trade and other payables 12 681,862 104,258

Digital asset payables 13 647,953 145,927

Total liabilities 245,373,709 457,085,618

NET ASSETS - -

EQUITY

Share capital 14 - -

Retained earnings - -

Total equity - -

Director

CoinShares Digital Securities Limited

The financial statements on pages 13 to 35 were approved and authorised for issue by the Board of Directors of the Company

and signed on its behalf by:

The above should be read in conjunction with the accompanying notes on pages 17 to 35 which form an integral part of these

financial statements.

Kirsty Lawrence

Date: 17 July 2023

Page 14

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Statement of Changes in Equit

y

For the year ended 31 December 2022

Ordinary Retained

Shares Earnings Total equity

£££

At 1 January 2021 - (76,636) (76,636)

Loss for the year (unaudited) - (127,727,886) (127,727,886)

Other comprehensive income (unaudited) - 127,804,522 127,804,522

Total comprehensive income (unaudited) - 76,636 76,636

At 31 December 2021 - - -

At 1 January 2022 - - -

Profit for the year - 127,804,522 127,804,522

Other comprehensive loss - (127,804,522) (127,804,522)

Total comprehensive income - - -

At 31 December 2022 - - -

The above should be read in conjunction with the accompanying notes on pages 17 to 35 which form an integral part of these

financial statements.

CoinShares Digital Securities Limited

The Company has issued 1 share valued at £0.01.

Page 15

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Statement of Cash Flows

For the year ended 31 December 2022

Unaudited

1 January 2022 to 1 January 2021 to

31 December 2022 31 December 2021

Note

££

Cash flows from operating activities

Profit/(loss) for the year 127,804,522 (127,727,886)

Adjustments for:

- (Gain)/loss on ETP liabilities

11

(430,412,939) 127,804,522

- Loss on digital assets 302,608,417 -

- 76,636

Change in working capital:

- Trade and other receivables - 5,000

- Trade and other payables (30) (76,666)

Net cash flow (used in)/provided by operating activities (30) 4,970

Net (decrease)/increase in cash and cash equivalents (30) 4,970

At the beginning of the year 4,970 -

At the end of the year

10

4,940 4,970

Reconciliation of net debt

Non-cash analysis

Cash flows from operating activities

- Trade and other receivables (588,370) (104,288)

- Trade and other payables 588,370 104,288

- Net issuance of ETP liabilities 218,112,690 329,176,838

- Net purchase of digital assets (218,112,690) (329,176,838)

CoinShares Digital Securities Limited

The above should be read in conjunction with the accompanying notes on pages 17 to 35 which form an integral part of

these financial statements.

Page 16

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements

For the year ended 31 December 2022

1 General information

2 Significant accounting policies

2.1 Basis of preparation

2.2 Adoption of new and revised Standards

 Annual Improvements to IFRSs 2018-2020 Cycle: Amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41 -

effective 1 January 2022

 Reference to the Conceptual Framework (Amendments to IFRS 3)  effective 1 January 2022

 Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16)  effective 1 January

2022

 Onerous Contracts  Cost of Fulfilling a Contract (Amendments to IAS 37)  effective 1 January 2022

CoinShares Digital Securities Limited

The financial statements have been prepared under the historical cost convention unless otherwise specified

within these accounting policies and in accordance with International Financial Reporting Standards as adopted

by the European Union ('IFRS'), which comprise Standards and Interpretations approved by the International

Accounting Standards Board ('IASB') and the Companies (Jersey) Law 1991, as amended. There were no

material departures from IFRS.

The preparation of financial statements in compliance with IFRS requires the use of certain critical accounting

estimates. It also requires management to exercise judgement in applying the Company's accounting policies

(see note 2.6).

The following principal accounting policies have been applied:

The Company is a public company limited by shares and is incorporated and domiciled in Jersey. The address of its registered

office is 2nd Floor, 2 Hill Street, St Helier, Jersey JE2 4UA and its company registration number is 127061.

The Company operates in Jersey, Channel Islands. The principal activity of the Company is to act as an issuer of exchange

traded products ('ETPs').

From 1 January 2022, the Company has applied the below amendments to IFRS Standards and Interpretations

issued by the IASB that are effective for annual periods beginning from 1 January 2022:

New and amended IFRS Standards that are effective for the current year

The adoption of these amendments has not had any material impact on the disclosures or on the amounts

reported in these financial statements.

New and revised IFRS Standards in issue but not yet effective

 Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) 

effective 1 January 2023

 Definition of Accounting Estimates (Amendments to IAS 8)  effective 1 January 2023

 Disclosure of Accounting policies and Classification of Liabilities as Current or Non-current (Amendments to

IAS 1)  effective 1 January 2023

 Amendments to IFRS 17 Insurance Contracts  effective 1 January 2023

 Deferral of IFRS 9 (Amendments to IFRS 4)  effective 1 January 2023

There has been no change to the previously audited figures. In 2021, the directors elected to amend the

accounting period end to 31 December in order to align the Company with the rest of the Group (CoinShares

International Limited ('CSIL') and its subsidiaries), as a result certain comparable financial information

presented in these financial statements has not been audited in the format presented.

At the date of authorisation of these financial statements, the Company has not applied the following new and

revised IFRS Standards that have been issued but are not yet effective:

Page 17

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

2 Significant accounting policies (continued)

2.2 Adoption of new and revised Standards (continued)

2.3 Going concern basis

2.4 Changes in accounting policies

2.5 Foreign currency translation

2.6 Judgements and sources of estimation uncertainty

Foreign exchange gains and losses arising from translation are included in the Statement of Comprehensive

Income.

Transactions and balances

The following are considered to be sources of judgement and estimate:-

The preparation of the Company's financial statements requires management to make judgements, estimates

and assumptions in applying the Company's accounting policies to determine the reported amounts of assets,

liabilities, income and expenses. The estimates and associated assumptions are based on historical experience

and various factors, including expectations of future events that are believed to be reasonable under the

circumstances. Actual results may differ from these estimates. The estimates and underlying assumptions are

reviewed on an ongoing basis.

The Company's financial statements are presented in Pound Sterling, which is the functional currency. All

values are rounded to the nearest pound, except when otherwise indicated.

Functional and presentation currency

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at

the dates of the transactions.

Foreign currency assets and liabilities are translated into the functional currency using the exchange rate

prevailing at the reporting date.

The accounting policies have been consistently applied by the Company and are consistent with those used in

the previous financial year.

There is continuing to be increased volatility seen in the price of digital assets. The directors do not consider the

price movements to impact the going concern for the Company as the products are fully hedged.

The directors do not expect that the adoption of the Standards listed above will have a material impact on the

financial statements of the Company in future periods.

CoinShares Digital Securities Limited

New and revised IFRS Standards in issue but not yet effective (continued)

The Company has net assets of £nil (2021: £nil) at the end of the reporting period. All expenses of the

Company are settled by CSJL through the issuance of fees to CSJL to cover the Company's expenses as

agreed in the Service Level Agreement dated 21 May 2021. The directors have prepared these financial

statements on a going concern basis due to CSJL's contractual obligation to cover the Company's expenses,

and ongoing financial support received from other Group entities, inclusive of its parent company, which will

continue to be provided for the foreseeable future.

Page 18

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

2 Significant accounting policies (continued)

2.6 Judgements and sources of estimation uncertainty (continued)

Critical judgements

Estimates

2.7 Revenue

The Company charges fees to CSJL to cover costs incurred as part of issuing exchange traded products.

The Company recognises revenue when (a) the amount of revenue can be measured reliably; (b) it is probable

that the Company will receive the consideration due under the contract; (c) the stage of completion of the

transaction at the end of the reporting period can be measured reliably; and (d) the costs incurred for the

transaction and the costs to complete the transaction can be measured reliably.

For Digital Securities with a management fee, the management fee is deducted from the ETP liabilities. The

management fee is aggregated and payable in Digital Assets to CSJL on a monthly basis in consideration for

the provision by CSJL of all management and administration services in relation to the ETP liabilities. As the

entirety of the management fee is paid to CSJL, the Company does not recognise any management fee

revenue or corresponding expense.

Accounting treatment of digital assets: the classification of digital assets as intangible in the financial

statements is a significant judgement, as there is currently no clear accounting standards dealing with digital

assets. Digital assets do not meet the definition of a financial instrument as they do not constitute a contract

that gives rise to another financial asset. Furthermore, the digital assets which are used to collateralise the

Company's ETP liabilities do not meet the definition of inventory as the assets are held for hedging and are not

held for sale in the ordinary course of business.

Revenue is measured at the fair value of the consideration received or receivable and represents the amount

receivable for services rendered, net of discounts and value added taxes.

Sale of services

Digital assets are initially recognised at their fair value as listed on exchanges, and derecognised at the value

derived in the same manner. Subsequent remeasurements are performed using the valuation as formula

defined in the prospectus and final terms. The fair value hierarchy of Digital Assets and the measurement is

disclosed under section 2.10 and 2.11 respectively. Fair value movements on digital assets are recorded in

other comprehensive income. When the valuation is lower than the original cost of the asset, fair value

movements are recognised through profit and loss. This is a critical judgement made by the directors but is

representative of industry standards also applied within the CoinShares group.

Management have not made estimates in the process of applying the Company's accounting policies.

CoinShares Digital Securities Limited

A

ccounting treatment of ETPs: The Company's ETPs, are settled in digital assets and therefore do not meet the

definition of a financial instrument set out in IFRS 9. In all other respects they operate in the same way as an

equivalent contract settled in cash. The Company has determined that the accounting policies for these

contracts are the same as they would be for an equivalent contract settled in cash and meeting the definition of

a financial instrument.

Page 19

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

2 Significant accounting policies (continued)

2.7 Revenue (continued)

2.8 Expenses

2.9 Cash and cash equivalents

2.10

2.11 Intangible assets - digital assets

For staked Digital Securities, digital assets received as staking rewards are recognised at the point in which the

Company is entitled to received the staking rewards.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants at the measurement date.

The fair value hierarchy under IFRS is set out as follows:

All expenses of the Company are recognised on an accruals basis.

For staked Digital Securities, the Digital Assets are staked with a third party and staking rewards are shared

between Digital Security holders and the Company. There is no management fee payable in relation to the

CoinShares' Staked Digital Securities. As staking rewards are received, a fixed percentage based staking

reward will be retained for Digital Security holders, any surplus staking rewards are aggregated and payable to

CoinShares Capital Markets (Jersey) Limited ('CSCMJL') as the staking agent. As the surplus staking rewards

are paid to CSCMJL, the Company does not recognise any staking reward revenue.

All purchases and sales of digital assets are recognised on the trade date, as the settlement of digital assets is

done instantly, after the trade has taken place.

Level 1  The unadjusted quoted price in an active market for identical assets or liabilities that the entity can

access at the measurement date.

Cash and cash equivalents include cash in hand, deposits held at all with banks, other short-term highly liquid

investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when

applicable, are shown within borrowings in current liabilities.

Securities are remeasured using reference indices as detailed in the prospectus. Given that the value of ETPs

is measured by reference to the valuation of underlying digital assets, the same remeasurement basis is used

for the valuation of digital assets and the ETPs.

Fair value hierarchy

Digital assets are accounted for as an intangible asset under the revaluation model. All digital assets are

treated as one class of asset.

Level 2  Inputs other than quoted prices included in Level 1 that are observable (i.e. developed using market

data) for the asset or liability, either directly or indirectly.

Fair value for Digital assets was determined by reference to price quotations in an active market (classified as

level 1 in the fair value hierarchy).

CoinShares Digital Securities Limited

Sale of services (continued)

Level 3  Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.

Page 20

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

2 Significant accounting policies (continued)

2.11 Intangible assets - digital assets (continued)

2.12 ETP liabilities

2.13 Financial instruments

Financial Assets

The decrease in the carrying value of a digital asset as a result of a revaluation shall be recognised in other

comprehensive income to the extent that it reverses previously recognised gains in other comprehensive

income. If a revaluation loss exceeds the accumulated gains recognised in equity in respect of digital assets,

the excess shall be recognised in the profit and loss.

The Company is an issuer of ETPs. The ETPs are described as per the prospectus, publicly available on

coinshares.com.

If the digital assets carrying amount is increased as a result of a revaluation, the increase shall be recognised

in other comprehensive income. However, the increase shall be recognised in the profit and loss to the extent

that it reverses previously recognised revaluation losses in the profit and loss.

ETPs are valued using the coin entitlement calculation defined in the prospectus. For staked Digital Securities,

the coin entitlement is increased in line with the staking rewards attributable to holders. Movements in the value

of the ETPs are recognised through profit and loss.

For financial assets, the Company applies the simplified approach permitted by IFRS 9, which requires

expected lifetime losses to be recognised from initial recognition, using a lifetime expected loss allowance for all

financial assets. To measure expected credit losses, financial assets have been grouped based on shared

credit risk characteristics and the Company assesses at each year end whether there is objective evidence that

a financial asset or a group of financial assets is impaired and recognises an allowance for impairment when

such evidence exists. Significant financial difficulties of the debtor, probability that the debtor will enter

bankruptcy and default or significant delay in payments are objective evidence that these financial assets are

impaired.

CoinShares Digital Securities Limited

Basic financial assets including trade receivables are non interest-bearing and are recognised initially at fair

value (transaction price), and subsequently amortised using the effective interest rate method, less provision for

impairment.

Loans to related entities are initially recognised at fair value and subsequently carried at amortised cost using

the effective interest method, less accumulated impairment losses.

Digital assets are derecognised when the Company has transferred substantially all risks and rewards of

ownership on disposal. Gains or losses realised on disposal of the digital assets are presented in the statement

of changes in equity as a transfer from the revaluation reserve to retained earnings.

The Company issues securities to holders which have been recognised as liabilties in the Statement of

Financial Position. These liabilities have been classified as Level 1 as per note 2.10.

A liability for an ETP is recognised on the settlement date, being the date of the completion of the trade as per

the prospectus.

Digital assets have been classified as Level 1 as per note 2.10.

Page 21

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

2 Significant accounting policies (continued)

2.13 Financial instruments (continued)

Financial Assets (continued)

Financial liabilities

2.14 Taxation

Current tax is recognised as income or expense in the Statement of Comprehensive Income, except to the

extent that the tax arises from a transaction which is recognised directly in equity.

Trade payables are non interest-bearing and are recognised initially at fair value (transaction price) and

subsequently measured at amortised cost using the effective interest method.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was

recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed

what the carrying amount would have been had the impairment not previously been recognised. The

impairment reversal is recognised in profit and loss.

The carrying amount of these assets is reduced through the use of an impairment allowance account which is

calculated as the difference between the carrying amount and the present value of estimated future cash flows,

discounted at the original effective interest rate.

Financial assets, or a part thereof, are derecognised only when the contractual rights to the cash flows from the

asset expire or are settled, or when the Company transfers the financial asset and substantially all the risks and

rewards of ownership to another entity. When there is no reasonable expectation of recovering a financial asset

it is derecognised. The gain or loss on derecognition is recognised in the profit and loss.

Trade and other payables represent liabilities for goods and services provided to the Company prior to the end

of financial year which are unpaid. They are classified as current liabilities if payment is due within one year or

less (or in the normal operating cycle of the business, if longer). Otherwise, they are presented as non-current

liabilities.

Borrowings are presented as current liabilities unless the Company has an unconditional right to defer

settlement for at least 12 months after the reporting date, in which case they are presented as non-current

liabilities.

Borrowings are initially recognised at their fair values (net of transaction costs) and subsequently carried at

amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is

recognised in profit or loss over the period of the borrowings using the effective interest method.

These assets are presented as current assets except for those that are expected to be realised later than 12

months after the year end, which are presented as non-current assets.

Current tax is recognised as the amount expected to be paid to or recovered from the tax authorities, using tax

rates enacted or substantively enacted by the reporting date in the countries where the Company operates and

generates income.

CoinShares Digital Securities Limited

Financial liabilities (or part thereof) are derecognised when, and only when, the Company's obligations are

discharged, cancelled, or they expire. Any difference between the carrying amount of a financial liability (or part

thereof) that is derecognised and the consideration paid is recognised in profit or loss.

Page 22

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

2 Significant accounting policies (continued)

2.14 Taxation (continued)

2.15 Share capital

3 Operating segments

31 December 2022

Digital Securities with Staked Digital Central

a Management Fee Securities Costs Total

££ £ £

Digital assets 226,244,967 18,396,865 - 244,641,832

Trade and other receivables - - 676,922 676,922

Digital asset receivables - 50,015 - 50,015

Cash and cash equivalents - - 4,940 4,940

Total assets 226,244,967 18,446,880 681,862 245,373,709

ETP Liabilities 226,140,396 17,903,498 - 244,043,894

Trade and other payables - - 681,862 681,862

Digital asset payables 104,571 543,382 - 647,953

Total liabilities 226,244,967 18,446,880 681,862 245,373,709

Net assets - - - -

The Company does not monitor its revenues and expenses split by operating segment.

This is the measure reported to the Board of Directors, being the Company's chief operating decision-maker, for the purposes

of assessing performance and allocating resources.

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or

options are shown in equity as a deduction, net of tax, from the proceeds.

The taxation charge is based on the profit for the year as adjusted for tax purposes. The Company pays tax at

0%, the standard Jersey tax rate.

The following is an analysis of the Company's assets and liabilities by reportable segment in the year ended 31 December

2022.

 Staked Digital Securities; and

 Central costs

The Company monitors its assets and liabilities according to three core operating segments, defined by the primary

characteristics of ETPs. The Company deems that it has three reportable operating segments in respect of assets and

liabilities, being:

 Digital Securities with a management fee;

CoinShares Digital Securities Limited

Page 23

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

3 Operating segments (continued)

31 December 2021

Digital Securities with Staked Digital Central

a Management Fee Securities Costs Total

££ £ £

Digital assets 456,981,360 - - 456,981,360

Trade and other receivables - - 99,288 99,288

Digital asset receivables - - - -

Cash and cash equivalents - - 4,970 4,970

Total assets 456,981,360 - 104,258 457,085,618

ETP Liabilities 456,835,433 - - 456,835,433

Trade and other payables - - 104,258 104,258

Digital asset payables 145,927 - - 145,927

Total liabilities 456,981,360 - 104,258 457,085,618

Net assets - - - -

4 Revenue

Unaudited

1 January 2022 to 1 January 2021 to

31 December 2022 31 December 2021

££

Fee income 2,101,877 1,220,116

2,101,877 1,220,116

The Company charges fees to the Programme Manager, CSJL, to cover its expenses as agreed in the Service Level

Agreement dated 21 May 2021. These costs consist primarily of professional expenses, custody fees and trading fees.

CoinShares Digital Securities Limited

The following is an analysis of the Company's assets and liabilities by reportable segment in the period ended 31 December

2021.

Revenue on products is recognised in CSJL and CSCMJL as programme manager and staking agent respectively.

Page 24

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

5 Administration expenses by nature

Included within administration expenses of £2,094,339 (2021: £1,140,337) (see page 36) are the following amounts:

Unaudited

1 January 2022 to 1 January 2021 to

31 December 2022 31 December 2021

££

A

udit fees 37,250 72,500

6 Taxation

The Company is subject to tax at the rate of 0% (2021: 0%).

7 Digital assets

31 Decembe

r

31 Decembe

r

31 Decembe

r

31 Decembe

r

2022 2021 2022 2021

Number Number £ £

By Currenc

y

Bitcoin 10,351 8,253 142,828,745 292,798,603

Ethereum 75,386 56,877 75,435,400 158,753,330

Litecoin 41,455 31,105 2,419,356 3,451,251

XRP 16,967,728 3,179,439 4,846,955 1,978,176

Polkadot 279,238 - 1,016,188 -

Tezos 2,355,697 - 1,419,274 -

Cardano 8,474,941 - 1,766,299 -

Solana 1,139,161 - 9,554,260 -

Chainlink 70,881 - 329,500 -

Uniswap 90,209 - 385,011 -

Cosmos 104,654 - 818,359 -

Mati

c

2,003,812 - 1,279,145 -

A

lgorand 17,355,131 - 2,543,340 -

48,968,644 3,275,674 244,641,832 456,981,360

Unaudited

31 Decembe

r

31 Decembe

r

2022 2021

££

Reconciliation of Digital Assets

Digital assets opening balance 456,981,360 -

A

dditions to digital assets 296,699,302 432,281,297

Net staking rewards 2,269,586 -

Disposals of digital assets (79,167,212) (102,234,617)

Management fees paid to CSJL (1,728,265) (869,842)

Fair value loss through profit and loss (302,608,417) -

Fair value (loss)/gain through other comprehensive income (127,804,522) 127,804,522

Digital assets closing balance 244,641,832 456,981,360

CoinShares Digital Securities Limited

Page 25

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

7 Digital assets (continued)

8 Trade and other receivables

31 Decembe

r

31 Decembe

r

2022 2021

££

A

mounts owed by Group undertaking

s

665,022 98,093

Prepayments and sundry debtor

s

11,900 1,195

676,922 99,288

9 Digital asset receivables

31 Decembe

r

31 Decembe

r

31 Decembe

r

31 Decembe

r

2022 2021 2022 2021

Number Number

££

Amounts owed by Group undertakings

CSCMJL - Solana (i)

1,280

-

10,736

-

Amounts owed by third parties

Staking rewards - Algorand (ii)

272,231

-

39,279

-

273,511 - 50,015 -

During the year, the Company launched a CoinShares Physical FTX Token ('CFTT') Digital Security offering investor exposure

to FTX Token ('FTT'), the native token to the FTX digital asset exchange. As a result of FTX entering Chapter 11 bankruptcy in

November 2022 and resultant volatility surrounding FTT, the Company suspended creations in CFTT on 14 November 2022

and suspended all redemptions in CFTT on 18 November 2022. On 19 December 2022 all outstanding CFTT were

compulsorily redeemed for approximately $0.10 each, and distributed to ETP holders. Additionally, the CFTT seed was

redeemed and the resulting FTT was transferred to CSCMJL in full.

Fee income of £2,101,877 (2021: £1,220,116) was earned from CSJL, as programme manager, to cover the Company's

expenses as per the Service Level Agreement, of which £665,022 (2021: £98,093) was outstanding at year end.

CoinShares Digital Securities Limited

On 15 September 2022, the Ethereum blockchain transitioned from a Proof-of-Work mechanism to a Proof-of-Stake

mechanism ('the Merge'). Prior to the completion of the Merge a forked version of the Ethereum blockchain that continued

using the Proof-of-Work consensus was created ('ETHW') and distributed to holders of Ethereum. The Company sold the

ETHW received, in exchange for Ethereum, and distributed the additional Ethereum pro rata to holders of the CoinShares

Physical Ethereum Digital Security through an increase to the coin entitlement.

(i) Amounts owed by Group undertakings relate to staked products where the reward earned by the noteholder is greater than

the reward being received.

(ii) Staking rewards in respect of the CoinShares Physical Staked Algorand product are received quarterly. At the year-end, the

Company had an outstanding receivable of £39,279 (2021: £nil) in respect of accrued staking rewards.

Page 26

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

9 Digital asset receivables (continued)

Unaudited

31 Decembe

r

31 Decembe

r

2022 2021

Reconciliation of digital asset receivables £ £

Digital asset receivables opening balance - -

A

dditions 240,660 -

Disposals (39,563) -

Loss on digital asset receivables (151,082) -

50,015 -

10 Cash and cash equivalents

31 Decembe

r

31 Decembe

r

2022 2021

££

Cash at bank 4,940 4,970

4,940 4,970

11 ETP liabilities

31 Decembe

r

31 Decembe

r

31 Decembe

r

31 Decembe

r

2022 2021 2022 2021

Number Number £ £

Securities type

CoinShares Physical Bitcoin

10,448,800

8,278,800

142,773,000

292,704,836

CoinShares Physical Ethereum

2,527,286

1,901,600

75,396,910

158,704,613

CoinShares Physical Litecoin

212,500

156,500

2,416,053

3,449,113

CoinShares Physical XRP

434,800

80,300

4,840,826

1,976,871

CoinShares Physical Staked Polkadot

257,500

-

980,519

-

CoinShares Physical Staked Tezos

453,000

-

1,402,567

-

CoinShares Physical Staked Cardano

8,265,000

-

1,764,189

-

CoinShares FTX Physical Staked Solana

10,928,100

-

9,183,556

-

CoinShares Physical Chainlink

715,000

-

329,077

-

CoinShares Physical Uniswap

910,000

-

384,530

-

CoinShares Physical Staked Cosmos

193,000

-

774,317

-

CoinShares Physical Staked Mati

c

195,000

-

1,277,325

-

CoinShares Physical Staked Algorand

1,745,000

-

2,521,025

-

37,284,986 10,417,200 244,043,894 456,835,433

CoinShares Digital Securities Limited

Page 27

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

11 ETP liabilities (continued)

Unaudited

31 Decembe

r

31 Decembe

r

2022 2021

££

Reconciliation of ETP liabilities

ETP liabilities opening balance 456,835,433 -

Creations of ETPs 296,631,728 432,281,297

Redemptions of ETPs (78,909,345) (103,104,458)

Net movement on staking rewards 287,617 -

Net movement on management fee (1,533,830) (190,997)

Fair value (gain)/loss (429,267,709) 127,849,591

ETP liabilities closing balance 244,043,894 456,835,433

Unaudited

31 Decembe

r

31 Decembe

r

2022 2021

££

Gain/(loss) on ETPs to CSCMJL and Third Parties 287,229,082 (107,375,102)

Gain/(loss) on other ETPs 142,038,627 (20,474,489)

429,267,709 (127,849,591)

Other gain on ETPs 11,089 -

Total gain/(loss) on ETP liabilities 429,278,798 (127,849,591)

12 Trade and other payables

31 Decembe

r

31 Decembe

r

2022 2021

£

Trade payables 46,809 57,842

A

mounts payable to parent compan

y

311,766 -

A

ccrued liabilities 323,287 46,416

681,862 104,258

Amounts owed to the ultimate parent company, CSIL, of £311,766 (2021: £nil) consist of expenses settled on behalf of the

Company. These amounts are repayable on demand, bear interest at 0% and are unsecured.

CoinShares Digital Securities Limited

Page 28

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

13 Digital asset payables

31 Decembe

r

31 Decembe

r

31 Decembe

r

31 Decembe

r

2022 2021 2022 2021

Number Number £ £

Amounts payable to Group undertaking

s

CSJL - Bitcoin

4

3

55,745

93,767

CSJL - Ethereum

38

17

38,490

48,717

CSJL - Litecoin

57

19

3,303

2,138

CSJL - XRP

21,455

2,097

6,129

1,305

CSJL - Solana

741

-

6,211

-

CSJL - Chainlink

91

-

423

-

CSJL - Uniswap

113

-

481

-

CSCMJL - Polkado

t

9,801

-

35,669

-

CSCMJL - Tezos

27,730

-

16,707

-

CSCMJL - Cardano

10,126

-

2,110

-

CSCMJL - Cosmos

5,632

-

44,042

-

CSCMJL - Mati

c

2,851

-

1,820

-

CSCMJL - Algorand

287,905

-

41,540

-

Amounts payable to third partie

s

Third parties - Solana

44,739 - 375,229

-

Third parties - Algorand

138,987 - 20,054

-

550,270 2,136 647,953 145,927

Unaudited

31 Decembe

r

31 Decembe

r

2022 2021

££

Reconciliation of digital asset payables

Digital asset payables opening balance 145,927 -

A

dditions 3,652,255 869,843

Disposals (1,865,006) (678,847)

Gain on digital asset payables (1,285,223) (45,069)

647,953 145,927

Amounts owed to the Third Parties relate to fees where seed capital has been provided for products. These amounts are

denominated in the relevant digital asset.

Amounts owed to the Group undertakings relate to either digital assets which are due to be paid to CSJL for the management

fee or CSCMJL for the staking rewards as per the prospectus, or assets provided by CSCMJL to test future digital asset

products. These amounts are denominated in the relevant digital asset.

CoinShares Digital Securities Limited

Page 29

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

14 Share capital

Shares classified as equit

y

31 Decembe

r

31 Decembe

r

31 Decembe

r

31 Decembe

r

2022 2021 2022 2021

Number Number £ £

Ordinary shares of £0.01 each 1 1 - -

1 1 -

15 Risk management

a) Market risk

i) Currency ris

k

ii) Interest rate risk

iii) Digital asset price risk

-

To mitigate its exposure to changes in prices of digital assets, any exposure to changes in prices on the digital assets held is

matched by the changes in value of the obligations to security holders.

Allotted, called-up and unpaid

The following sets out a description of the principal risks inherent in the activities of the Company along with the action taken to

manage these risks.

CoinShares Digital Securities Limited

The majority of the Company's financial assets and liabilities are either non-interest bearing, or at a fixed interest rate and as a

result, the Company is not subject to significant amounts of risk due to fluctuations in the prevailing levels of market interest

rates.

Digital assets are an extremely volatile asset class. Digital asset price risk arises from the uncertainty about future prices of the

digital assets, impacting both the fair value of the digital assets held by the Company and the fair value of the liabilities of the

Company towards security holders.

The Company is authorised to issue 10,000 ordinary shares of £0.01 each, they confer on the holder the right to receive

dividends at the Company's discretion. If, at the Company's discretion, there is a return of assets, ordinary shares confer on the

holders thereof the rights in respect of the assets of the Company available for distribution among the shareholders. Ordinary

shares issued and allotted are accounted for as equity.

The Company issues securities which are 100% physically backed and therefore has a liability towards security holders linked

to digital assets, as well as the specific operational risks to holding digital assets.

The Company seeks to mitigate currency risk by only receiving enough fees from CSJL to cover expenses, and not receiving

the management fee directly. On the basis of the above information, the Company believes currency risk is not material.

Interest rate risk is the risk that the value of the Company will be impacted by fluctuations in the prevailing levels of market

interest rates.

Page 30

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

15 Risk Management (continued)

a) Market risk (continued)

Price change Price change

-50% 100%

££ £

Assets

Bitcoin 142,828,745 71,414,372 285,657,490

Ethereum 75,435,400 37,717,700 150,870,800

Litecoin 2,419,356 1,209,678 4,838,712

XRP 4,846,955 2,423,477 9,693,910

Polkadot 1,016,188 508,094 2,032,376

Tezos 1,419,274 709,637 2,838,548

Cardano 1,766,299 883,150 3,532,598

Solana 9,554,260 4,777,130 19,108,520

Chainlink 329,500 164,750 659,000

Uniswap 385,011 192,506 770,022

Cosmos 818,359 409,180 1,636,718

Mati

c

1,279,145 639,572 2,558,290

A

lgorand 2,543,340 1,271,670 5,086,680

Digital asset receivables 50,015 25,008 100,030

Other assets 681,862 681,862 681,862

Total assets 245,373,709 123,027,786 490,065,556

Liabilities

ETP liability 244,043,894 122,021,947 488,087,788

Digital assets payable 647,953 323,977 1,295,906

Other liabilities 681,862 681,862 681,862

Total liabilities 245,373,709 123,027,786 490,065,556

Net assets - - -

b) Credit risk

c) Liquidity risk

Carrying amount

as at 31

December 2022

The above analysis shows the impact of both a fifty percent decline and a one hundred percent increase in digital assets

prices. A change in price does not impact the NAV.

Liquidity risk is the risk that the Company will encounter difficulties in meeting obligations associated with financial liabilities, in

particular towards security holders.

CoinShares Digital Securities Limited

Credit risk is the risk that an issuer or counterparty will be unable or unwilling to meet a commitment that it has entered into with

the Company. Digital asset activity has an inherent credit risk due to the nature of the industry, which is non-regulated,

extremely volatile, has low barriers to entry and is vulnerable to bad actors.

Credit risk from balances with custodians, banks, brokers and financial institutions is managed, monitored and controlled by the

finance department in accordance with the Company policy. It is the Company's policy to only enter into transactions with

reputable counterparties, as determined through appropriate due diligence.

The risk of losing Digital Assets in digital wallets due to fraud is reduced through digital assets being kept in cold storage with

Komainu, providing a cold storage vault. The Company does not expect to incur material credit losses in respect of digital

assets.

Page 31

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

15 Risk Management (continued)

c) Liquidity risk (continued)

On demand

££ £

Current assets

A

mounts owed by related parties 665,022 665,022 -

Digital asset receivables* 50,015 50,015 -

Cash at bank 4,940 4,940 -

Prepayments and sundry debtor

s

11,900 11,900 -

Digital assets* 244,641,832 244,641,832 -

Total current assets 245,373,709 245,373,709 -

Current liabilities

A

ccounts payable 681,862 681,862 -

Digital assets payable* 647,953 647,953 -

ETP liabilities* 244,043,894 244,043,894 -

Total current liabilities 245,373,709 245,373,709 -

Net current assets - - -

d) Capital risk management

e) Operational risk

* As disclosed in note 2, digital assets and ETP liabilities are not financial instruments however there is an active market and

they are readily realisable on demand.

These are risks relating to losses as a result of operational matters such as having inappropriate or insufficient routines, human

error, systems failures and legal risks.

The capital of the Company is represented by the net assets attributable to ordinary shareholders. The Company's objective

when managing capital is to safeguard the Company's ability to continue as a going concern in order to provide returns for

shareholders and benefits for other stakeholders and to maintain a strong capital base to support the development of the

investment activities of the Company. This is achieved through actively managing the Company's products.

Less than 3

months

Securities holders can request redemption of their securities which will be settled two business days following a valid

redemption notice. The Company ensures that it holds the relevant digital asset at all times to be able to meet these

redemptions. The Directors believe that the risk is adequately mitigated and therefore no sensitivity analysis is required.

The following maturity analysis shows that liquidity risks are dealt with through matching the maturity of the assets and

liabilities.

Carrying amount

as at 31

December 2022

Liquidity issues could arise as a result of the redemption of securities. In this case, the Company would be required to have

sufficient liquidity to finance the redemption of the securities. The prospectus and final terms for each security define the

formula at which the securities can be redeemed based on a coin entitlement.

The main operational risk for the Company would be the inability to redeem a security through either systems failures or

continuity planning issues. The risk is mitigated through the use of a business continuity plan which has been tested, and

demonstrated that the traders can perform their work from anywhere.

CoinShares Digital Securities Limited

Page 32

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

15 Risk Management (continued)

e) Operational risk (continued)

16 Related party transactions

CSJL Subsidiary

CSHL Subsidiary

CSUKL Subsidiary

XBTP Subsidiary

CSGP2L Subsidiary

CSCo Subsidiary

GTSA Associate

GTLA Subsidiary

CS Cap Subsidiary

CSGPI Subsidiary

CSF Subsidiary

CSTL Subsidiary

Elwood Asset Management

Services Limited

EAMSL Subsidiary 100% UK 20/07/2021

Elwood Asset Management

LLP

EAMLLP Subsidiary 100% UK 20/07/2021

France 17/12/2021

Jersey 30/06/2019

Date of Acquisition

The cyber risks are mitigated through the use of systems to prevent external attacks (such as, but not limited to, firewalls,

detection of possible phishing emails, encryption using secure keys and strong physical security). Komainu, as custodian, are

subject to periodic reviews. The risk of theft of the Company's custodied coins is considered minimal owing to the strong control

framework built around the storage and transfer of Digital Assets.

20/03/2020

CoinShares Capital Markets

(Jersey) Limited

CoinShares Technologies

Limited

USA

17/12/2021

09/08/2018

12/02/2019

CSAM Subsidiary 100%

CoinShares Capital Markets

(UK) Limited

CSCMUKL Subsidiary 100% UK 30/06/2019

CoinShares GP I LLC

100%

02/10/2021

100%

USA

Switzerland

100% Jersey

100%

The risk of hacking, and losing digital assets in digital wallets due to fraud is reduced through the majority of the digital assets

being kept in cold storage with Komainu, who have a SOC 1 Type 2 report. The latest SOC 1 Type 2 Report, covering the

period 1 January 2021 to 30 November 2021, was independently reviewed by PricewaterhouseCoopers CI LLP and authorised

for issue of 19 August 2022. A SOC 1 Type 2 Report covering Komainu's control framework in 2022 is in progress. In addition

to limiting the exposure to fraud for the Company, cold storage of digital assets with Komainu also reduces the Company's

exposure to hacking.

The Group consists of the Company and the following entities held by the ultimate parent company, CSIL:

CoinShares GP II Limited

Gold Token SA

CoinShares Capital, LLC 100% 18/09/2019

CoinShares Employment

Services (Jersey) Limited

CSESJL

01/07/2018

CSCMJL Subsidiary

CoinShares Asset

Management

100%

Switzerland

CoinShares France 100% France

100%

GABI Trading Limited (Asia)

Subsidiary

23%

100% USA

26/09/2018

Subsidiary

09/02/2018

Sweden

Other Group entities

25/09/2017

19/04/2017

19/04/2019

100% Jersey

CoinShares (UK) Limited 100% UK

100% Jersey 30/06/2019

Investee

Relationship

CSIL's Ownership

%

CoinShares Digital Securities Limited

JurisdictionName Defined as

Jersey

Hong Kong

CoinShares Co

FlowB Holding Switzerland

SA

Flowbank Associate 28.31%

08/08/2018

XBT Provider AB (publ)

CoinShares Corporate

Services (Jersey) Limited

CSCSJL

CoinShares (Holdings)

Limited

100% Jersey

25/06/2018

Key Group entities

CoinShares (Jersey) Limited 100% Jersey

Page 33

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

16 Related party transactions (continued)

CoinShares

(

Holdin

g

s

)

Limited

(

'CSHL'

)

was dissolved on 10 Januar

y

2023.

CoinShares Technolo

g

ies Limited

(

'CSTL'

)

(

formerl

y

GABI Ca

p

ital Limited

)

was dissolved on 11 Januar

y

2023.

31 Decembe

r

31 Decembe

r

31 Decembe

r

2022 2022 2022

Digital assets Securities issued £

Seeded by CSCMJL

Bitcoin 5,500 5,500,000 75,892,363

Ethereum 39,643 1,315,000 39,668,958

Solana 17,394 170,000 145,886

115,707,207

31 Decembe

r

31 Decembe

r

31 Decembe

r

2021 2021 2021

Digital assets Securities issued £

Seeded by CSCMJL

Bitcoin 5,500 5,500,000 195,137,596

Ethereum 39,450 1,315,000 110,111,789

Litecoin 12,000 60,000 1,331,443

306,580,828

CSHL was previously the Company's immediate parent company. CSHL has settled costs of £nil (2021: £126,485).

CoinShares Digital Securities Limited

Elwood Asset Management Services Limited and Elwood Asset Management LLP were dissolved on 28 March 2023.

Komainu Holdings Limited is an investment of CSIL, and is the parent company to Komainu (Jersey) Limited ('KJL'). KJL

provides custody services to the Company. During the year, KJL charged custody fees of £529,137 (2021: £526,916), of which

£31,127 (2021: £56,476) remains outstanding at the year end.

CSCMJL is the provider and staking agent for the programme and earns staking rewards through staked products. CSCMJL is

also a subsidiary of CSIL. CSCMJL has seeded digital assets to the Company as detailed in the following tables. The Company

also holds the staking rewards in digital assets on behalf of CSCMJL before it gets paid. At the period end, the Company also

has receivables and payables with CSCMJL as detailed in notes 9 and 13.

CSJL is the programme manager for the programme and is also a subsidiary of CSIL. CSJL pays for the costs of the Company

through a fee. CSJL has settled expenditure directly of £1,534,948 (2021: £898,695) and has been charged fees of £2,101,877

(2021: £1,220,116). As at the year end, the Company has an outstanding receivable of £665,022 (2021: £98,093). The

Company also holds the management fee in digital assets on behalf of CSJL before it gets paid. At the year end, the Company

holds digitals assets as payables to CSJL as detailed in note 13.

CSIL is the Company's ultimate parent company. CSIL has settled costs of £311,766 (2021: £91,844), and at year end, there is

an outstanding payable of £311,766 (2021: £nil).

Napoleon Crypto SAS and Napoleon Software SAS were absorbed into Napoleon Group SAS on 11 May 2022 and 31 May

2022 respectively. Napoleon Group SAS was subsequently renamed to CoinShares France on 7 August 2022.

Following an internal restructuring, Napoleon Asset Management SAS was acquired on 4 July 2022 as a component of the

CoinShares France acquisition that occurred at the end of 2021. It was subsequently renamed CoinShares Asset Management

on 7 August 2022.

Page 34

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Notes to the Financial Statements (continued)

For the year ended 31 December 2022

17 Events after the reporting date

18 Ultimate controlling party

On 27 March 2023, the Company launched two new index ETPs CoinShares Physical Top 10 Crypto Market ETP &

CoinShares Physical Smart Contract Platform ETP. These two products are listed on German's main market Xetra. These

products have both had their management fees reduced to 0.0% per annum.

In the period following the financial year end, digital asset prices have shown strong price recovery. As at 17 July 2023 Bitcoin

stands at $30.2k, and Ethereum at $1.9k, having increased 83% and 60% respectively since 31 December 2022.

The Company's parent company is CSIL, a company incorporated in Jersey, Channel Islands at 2nd Floor, 2 Hill Street, St

Helier, Jersey, JE2 4UA. CSIL is considered to be the ultimate controlling party.

Audited financial statements for the ultimate controlling party are available at the Company's website:

www.coinshares.com/investor-relations

CoinShares Digital Securities Limited

On 1 February 2023, the Company announced that a fee holiday had been agreed for the CoinShares Physical Ethereum

product, reducing the management fees from 1.25% per annum to 0% per annum.

Page 35

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

Unaudited Unaudited

1 January 2022 to 1 January 2021 to

31 Decembe

r

31 Decembe

r

2022 2021

££

Administration expenses

A

udit and accountancy fees 37,250 72,500

Custody fees 529,137 526,916

Directors salaries 15,000 8,750

General expenses 44,539 12,000

Legal fees 116,626 31,548

Marketing expenses 12,626 -

Professional fees 822,607 412,268

Trading expenses 516,554 76,355

2,094,339 1,140,337

Appendix 1: Detailed administration expenses for the year ended 31 December 2022 (unaudited

)

CoinShares Digital Securities Limited

Page 36

Doc ID: 1fbdd8b1d59028b298b380e5d5523193da2d7862

2022-12-31-CoinShares-Digital-Securities-Limited-Final (inc...

2022-12-31-CoinSh...(inc opinion).pdf

1fbdd8b1d59028b298b380e5d5523193da2d7862

DD / MM / YYYY

Signed

17 / 07 / 2023

16:00:51 UTC+1

Sent for signature to Jeri-Lea Brown

(jbrown@coinshares.com), Kirsty Lawrence

(klawrence@coinshares.com), Ewan Spraggon

(ewan.spraggon@bakertilly.je) and Townsend Lansing

(tlansing@coinshares.com) from

sbrownoakesoconnor@coinshares.com

IP: 212.9.28.248

17 / 07 / 2023

16:02:44 UTC+1

Viewed by Kirsty Lawrence (klawrence@coinshares.com)

IP: 212.9.28.248

17 / 07 / 2023

16:03:43 UTC+1

Signed by Kirsty Lawrence (klawrence@coinshares.com)

IP: 212.9.28.248

17 / 07 / 2023

16:16:56 UTC+1

Viewed by Jeri-Lea Brown (jbrown@coinshares.com)

IP: 212.9.28.248

17 / 07 / 2023

16:17:07 UTC+1

Signed by Jeri-Lea Brown (jbrown@coinshares.com)

IP: 212.9.28.248

17 / 07 / 2023

16:32:40 UTC+1

Viewed by Townsend Lansing (tlansing@coinshares.com)

IP: 82.132.228.18

17 / 07 / 2023

16:33:02 UTC+1

Signed by Townsend Lansing (tlansing@coinshares.com)

IP: 82.132.228.18

17 / 07 / 2023

16:37:04 UTC+1

Viewed by Ewan Spraggon (ewan.spraggon@bakertilly.je)

IP: 83.137.250.23

17 / 07 / 2023

16:37:17 UTC+1

Signed by Ewan Spraggon (ewan.spraggon@bakertilly.je)

IP: 83.137.250.23

The document has been completed.17 / 07 / 2023

16:37:17 UTC+1

2022-12-31-CoinShares-Digital-Securities-Limited-Final (inc...

2022-12-31-CoinSh...(inc opinion).pdf

1fbdd8b1d59028b298b380e5d5523193da2d7862

DD / MM / YYYY

Signed