CoinShares Digital Securities Limited
A
udited financial statements for the year ended 31 December 2025
Doc ID: f0770dac2f7f3e58f05df562a8b197965f7ae429
Audited Financial Statements
For the year ended 31 December 2025
Contents
Page
Company Information
1
Directors' Report
2 - 12
Global Statement for the Financial Statements
13
Independent Audit Report
14 - 17
Statement of Comprehensive Income
18
Statement of Financial Position
19
Statement of Changes in Equity
20
Statement of Cash Flows
21
Notes to the Financial Statements
22 - 46
CoinShares Digital Securities Limited
Doc ID: f0770dac2f7f3e58f05df562a8b197965f7ae429
CoinShares Digital Securities Limited
Company Information
For the year ended 31 December 2025
The Company
Registered Number 127061
Registered Office 2nd Floor
2 Hill Street
St Helier
Jersey
JE2 4UA
Directors Kirsty Lawrence
Michael Fox
Stuart Pinnington
Townsend Lansing Jr. (resigned 15 April 2025)
Company Secretar
y
Independent Auditor BDO LLP (appointed on 11 February 2026)
55 Baker Street
London
W1U 7EU
Barclays Bank PLC.
13 Library Place
St Helier
Jersey
JE4 8NE
Komainu Digital
3rd Floor
2 Hill Street
St Helier
Jersey
JE2 4UA
Zodia (from 2025 onwards)
1st Floor
8 Eastcheap
London
EC3M 1AE
CoinShares Digital Securities Limited
Custodians
Bank
CoinShares Corporate Services (Jersey) Limited
Page 1
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CoinShares Digital Securities Limited
Directors' Report
For the year ended 31 December 2025
Incorporation
The Company is incorporated, domiciled and tax resident in Jersey, Channel Islands.
Principal activity
Restatement of results
Business review and key performance indicators
During the year the directors elected to change the accounting policy of its digital assets. The change has resulted in the
Group’s results being restated for 31 December 2024. This restatement has been reflected in all pages of these financial
statements. Further information can be found in note 3 of the financial statements.
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 issued by the
Company 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 Company is a Special Purpose Vehicle whose sole business is the issue of asset-backed securities. The Company
has established a programme for the issue of Digital Securities whose return is linked to the performance of underlying
Digital Assets. The Company is a wholly owned subsidiary of CoinShares International Limited, which is the immediate
parent and the ultimate parent of the Group.
Crypto-ETP Market
Company Digital Securities performance in 2025
The directors present their report and the financial statements of CoinShares Digital Securities Limited (the 'Company')
for the year ended 31 December 2025.
Despite weaker digital asset performance in the final quarter of 2025, The suite of products issued by the Company
('CoinShares ETPs') delivered a strong year of inflows, with $1.1bn (£815mn) of inflows throughout the course of the
year. The CoinShares ETPs saw $662mn of inflows throughout the second half of 2025, demonstrating the platform's
resilience in weaker market conditions as seen in the final quarter of 2025.
2025 was marked by strong institutional engagement in the digital asset market, albeit accompanied by heightened price
volatility. Bitcoin reached an all-time high in October 2025, driven by increasing institutional allocation. The final quarter
of the year saw sharp corrections across the digital asset market, resulting in weaker price action into year-end. Despite
late-year weakness, the CoinShares ETP platform continued to see robust demand for its suite of digital securities,
reflected in strong net inflows.
The Company has sought to meet evolving investor demand by launching two new products throughout 2025, and
another early in 2026. The CoinShares ETP platform enters 2026 with a foundation of continued inflow and strong suite
of products, cementing itself as a key contributor to the business activities of the CoinShares Group.
The continued net inflows within the platform reflected sustained investor demand for physically backed digital asset
exposure. The year end digital asset balance for CoinShares ETPs stood at £2.1bn, rising 7% from 31 December 2024
where the balance stood at £1.9bn, driven by a combination of net flows and price movement.
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CoinShares Digital Securities Limited
Directors' Report
For the year ended 31 December 2025
Business review and key performance indicators (continued)
On 6 January 2026, the Company launched a new staking product, the CoinShares BNB Staking ETP ('CBNB'). The
product is listed on the SIX Swiss Exchange with a 0% management fee and 0.25% staking yield to ETP holders.
New product launches in 2025
On 28 July 2025, the Company launched a new staking product, the CoinShares Physical Staked SEI ETP ('CSEI'). The
product is listed on the SIX Swiss Exchange, with a 0% management fee and a staking reward of 2% to ETP holders.
Changes in existing products in 2025
On 28 October 2025, the Company launches the CS Physical Staked Toncoin ETP. This product is listed on the SIX
Swiss Exchange, has a management fee of 0% and offers a staking reward of 2% to ETP holders.
On 19 December 2025, the Company updated the naming convention of the Digital Securities. The changes involved:
- the removal of the term “Physical” from product names;
- replacing the term “Staked” with “Staking”; and
- the addition of “ETP” at the end of product names.
For example, CoinShares Physical Staked Tezos was renamed CoinShares Tezos Staking ETP. These changes relate
solely to product naming and branding. There were no changes to the underlying investment strategy, structure, or risk
profile of the products. Accordingly, the name changes had no impact on the Company’s financial position.
These financial statements refer to the updated naming convention of Digital Securities throughout.
On 14 January 2025 the Company announced an immediate reduction in the management fees for the CoinShares
Physical Bitcoin ETP product from 0.35% per annum to 0.25% per annum.
On 8 May 2025, the Company increased the staking reward to ETP holders on the CoinShares Physical Staked Tezos
ETP from 3% to 10%.
On 23 February 2026 the Company announced a reduction in the management fees for the CoinShares Bitcoin ETP
product. From 23 February 2026 the fees were reduced from 0.25% to 0.15%.
On 24 February 2026, the Company launched a new staking product, the CoinShares Hyperliquid Staking ETP ('LIQD').
The product is listed on the Xetra Exchange with a 0% management fee and 0.5% staking yield to ETP holders.
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CoinShares Digital Securities Limited
Directors' Report
For the year ended 31 December 2025
Business review and key performance indicators (continued)
R
es
t
a
t
e
d
R
es
t
a
t
e
d
2025 2024 2025 2024
Number Number £ £
By Currenc
y
Bitcoin 19,461 13,766 1,272,881,980 1,045,510,155
Ethereum 133,256 118,188 294,980,361 321,300,667
Litecoin 130,286 114,877 7,526,008 9,494,786
XRP 123,007,506 69,350,796 169,894,685 117,284,370
Polkadot 3,395,937 1,978,606 4,573,088 10,784,508
Tezos 22,018,002 4,594,909 8,312,946 4,894,039
Cardano 52,160,945 36,964,845 13,333,639 25,591,295
Solana 2,767,830 1,855,100 257,778,808 291,828,271
Chainlink 1,277,410 771,445 11,754,887 12,824,166
Uniswap 794,635 595,340 3,457,887 6,488,083
Cosmos 983,669 397,695 1,426,609 2,043,374
Matic 34,771,481
15,802,279 2,631,195 5,923,966
A
lgorand 83,684,482 56,598,171 6,965,307 15,716,856
SEI 20,054,219 - 1,683,189 -
Toncoin 710,896 - 863,720 -
Binance Coin 1,475 - 946,077 -
Digital asset - COIN10 7,514,973 3,098,836
Digital asset - COINSMRT 1,814,218 2,763,735
Digital asset - CFTN 14,227,939 9,079,152
2,082,567,516 1,884,626,259
Future developments
Risks and uncertainties
The Digital Securities provide investors with exposure to Digital Assets or a basket of Digital Assets. Each Digital Security
is a debt instrument whose redemption price is linked to the value of the relevant underlying Digital Asset/Digital Assets.
Each class of Digital Securities is issued under limited recourse arrangements whereby the holders have recourse only to
the relevant Digital Assets and basket of Digital Assets held to support the Digital Security and not to the Digital Assets
and basket of Digital Assets of any other class of Digital Security or the Company.
Refer to note 8 Digital assets held for further details.
Digital Assets held
Any movements in the value of the Digital Assets and basket of Digital Assets are wholly attributable to the holders of the
Digital Securities, therefore Company has no residual exposure to movements in the value of the Digital Assets and
basket of Digital Assets.
The Directors are responsible for the strategy of the Company and continue to assess the needs of the evolving market,
and the strategy of the Group overall, to design, build and launch products to meet these needs. This will include (but is
not limited to) consideration for products referencing digital assets already included within the CoinShares Digital
Securities Prospectus, in addition to ongoing assessment of the management fees attached to existing products.
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CoinShares Digital Securities Limited
Directors' Report
For the year ended 31 December 2025
Risks and uncertainties (continued)
As a result, the principal risks and uncertainties to which the Company is exposed has not materially changed during the
year. There is an inherent risk from the point of view of investors as the values of Digital Assets and basket of Digital
Assets, and thus the value of the Digital Securities, may vary widely due to, amongst other things, changing supply and
demand for Digital Assets, government and monetary policy or intervention, interest rate levels and global or regional
political, economic or financial events.
The following sets out a description of the principal risks inherent in the activities of the Company and to an investment in
its products.
Risk factors relating to Digital Securities
While the overall level of AUM will impact the level of Management Fee/Staking Reward retained by the Group
respectively, the Company does not retain any net gains or losses or net risk exposures, as the gains or losses on the
liability represented by the Digital Securities are matched by corresponding losses or gains attributable to the Digital
Assets and basket of Digital Assets.
The value of a Digital Security can change quickly and could even drop to zero: The price of Digital Assets is
volatile and may be affected by a variety of factors. Should demand for a Digital Asset decrease or should it fail to
achieve adoption among the Digital Asset community or should it suffer technological or coding failures or hacks, for
example, then its value could drop sharply and permanently, which in turn would adversely affect the price of the relevant
Digital Securities in the secondary market, as the Digital Securities are designed to track the price of the relevant Digital
Asset.
Valuation: Digital Assets do not represent an underlying claim on income or profits, nor do they represent a liability that
must be repaid. Their value is a function of the perspective of the participants within the market place (or specific, given,
market place) and supply and demand. As a result, the value of Digital Assets may be more speculative and more
volatile than traditional assets representing claims on income, or profits or debts.
Risks may differ between various Digital Assets and their underlying protocols: The Company may offer Digital
Securities that reference a wide variety of Digital Assets, and some of those individual Digital Assets may have risks that
are not comparable to risks of other Digital Currencies.
Liquidity risk in the market for Digital Assets: Exchanges for Digital Assets are not only new, but most are also
unregulated. As a result, there is a risk of delay or failure of liquidity in the markets for Digital Assets, market closures or
liquidity failures can affect both the price and tradability of underlying Digital Assets and, by extension, the Digital
Securities. In such an event, the price of Digital Assets may decline or be more volatile and price determination for a
Digital Security may become more difficult. This may in turn reduce the ability of investors to trade the Digital Securities
and/or adversely affect the price of the Digital Securities.
The market price of Digital Securities is a function of supply and demand amongst investors wishing to buy and sell
Digital Securities and the bid or offer spread that the market makers are willing to quote.
The Company has exposure to country and currency risk as the Digital Securities are mainly priced in US Dollars.
However, the Directors do not consider the Company to have a significant net exposure to country and currency risk as
the gains or losses on the liability represented by the Digital Securities are matched by corresponding losses or gains
attributable to the Digital Assets and basket of Digital Assets.
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CoinShares Digital Securities Limited
Directors' Report
For the year ended 31 December 2025
Risks and uncertainties (continued)
The Company consistently monitors its operational risk due to the reliance on third party service providers.
The risk of hacking, and losing Bitcoin/Ethereum and other digital assets in digital wallets due to fraud is reduced through
the majority of the digital assets being kept in cold storage with Komainu and Zodia, who provide access to a cold
storage vault. Komainu has a SOC 1 Type 2 report, the latest covering the period from 1 December 2024 to 30
November 2025. Zodia has a SOC 1 Type 1 report and a SOC 1 Type 2 report for the period 1 January 2025 to 30
September 2025. Both Komainu and Zodia are also ISO27001 certified.
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). Custodians are subject
to periodic reviews.
The risk of theft of the Company's custodied coins is considered minimal due to the effective control framework in place
at the custodians around the storage and transfer of Digital Assets.
Risk of loss of confidence in the Digital Asset protocols and their networks: Digital Assets are dependent on
investors, users and other members of the digital asset maintaining confidence in their underlying protocols. Should
Digital Asset investors, miners or exchanges lose confidence in an underlying protocol, the liquidity and/or value of the
associated Digital Asset may decrease, which in turn would affect the liquidity and/or value of the corresponding Digital
Securities.
Risk of loss of confidence in the Digital Asset exchanges and market infrastructure: Digital Assets trade on a
number of exchanges, many of which are unregulated. Disruptions to those exchanges, whether caused by hacks or
fraud or operational issues, could materially impact the ability of digital currencies to trade, which in turn would impact
their price.
Risk of Liquidity in certain Proof of Stake Protocols: The Issuer may stake coins that are subject to such liquidity
restrictions. As a result, the Issuer may hold coins subject to such restrictions, which in turn may hinder the Issuer in
satisfying redemption requests. The Issuer will agree with the Staking Agent to provide a necessary liquidity bridge to
ensure it can continue to satisfy redemption obligations while its holdings are restricted, but there can be no guarantee
that the Staking Agent can provide such alternative liquidity.
Risk factors relating to the Company
Political risk in the market of Digital Assets: The legal status of Digital Assets varies between different countries and
is very much in transition. There exists a lack of regulatory consensus concerning the regulation of Digital Assets in
Europe. Future regulatory or political developments could adversely affect markets for Digital Assets, their adoption and
ultimately their value.
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.
Operational risk: Operational risk is the risk of direct or indirect loss arising from the Company’s processes and
infrastructure, and from external factors other than credit, markets and other price risk and liquidity issues such as those
arising from legal and regulatory requirements and generally accepted standards of corporate behaviour.
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CoinShares Digital Securities Limited
Directors' Report
For the year ended 31 December 2025
Risks and uncertainties (continued)
Market Risk: the risk of a loss of value on financial instruments arising from changes in the prevailing parameters of the
market. Digital assets are an extremely volatile asset class, which can respond unexpectedly and adversely to events
outside of the Company's control. This risk is mitigated by ensuring the value of the obligations to security holders is
matched by the value of digital assets held.
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 non-interest
bearing 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.
Credit risk: 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, 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 specific custodians, providing a cold storage vault. The Company does not expect to incur material credit losses in
respect of digital assets.
Credit risk arising from the ETP creation process is mitigated by the fact that Digital Securities are issued to
counterparties only after the underlying Digital Assets have been received. Management Fees and Staking Rewards
recognised by the Programme Manager and Staking Agent respectively are deducted from amounts held in relation to
the ETPs, therefore not relying on counterparties.
Liquidity risk: Liquidity risk is the risk that the Company will encounter difficulties in meeting obligations associated with
financial liabilities. 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.
Liquidity risk associated with the payment of suppliers is mitigated through the arrangement whereby expenses of the
Company are settled by CoinShares (Jersey) Limited ('CSJL') through the issuance of fees, agreed in the Service Level
Agreement.
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 nil. The Company's objective is to undertake the issuance and
redemptions of Digital Securities and performing the associated obligations for the Group, in the interest of benefitting the
shareholders of the ultimate parent company. This is achieved through frequent evaluation of the Company's products to
ensure they meet investor demands.
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CoinShares Digital Securities Limited
Directors' Report
For the year ended 31 December 2025
Corporate Governance
Sustainability and Corporate Responsibility
Sustainability and corporate responsibility are embedded throughout the business of the CoinShares Group Directors
believe this benefits shareholders and employees of the Group, investors in CoinShares products and services offered as
well as wider society.
The Board meets regularly as required by the operations of the Company, but at least quarterly to review the overall
business of the Company and to consider matters specifically reserved for its review.
The Group Directors acknowledge that climate change and its impact on the global economy is of increasing interest and
focus for stakeholders and that, where relevant, stakeholders will seek information from companies regarding how
climate change is expected to impact the operations of the business and how climate change risk has been considered in
the context of reported results.
In acknowledging the above, the Directors have considered the Company’s exposure to climate change and determined
that due to the nature of the Company and its operations there are no directly observed impacts of climate change on the
business. As a result, the Directors concluded that there is no basis on which to provide extended information of analysis
relating to climate change, including as part of the basis of accounting or individual accounting policies adopted by the
Company.
The Directors have concluded specifically that climate change, including physical and transition risks, does not have a
material impact on the recognition and separate measurement considerations of the assets and liabilities in these
financial statements as at 31 December 2025.
The liabilities are valued using listed market prices at the period end. These observable inputs and market prices will
reflect wider market sentiment, which inherently includes market perspectives relating to the impactor climate change.
The Board recognises that government and societal responses to climate change risks are still developing and the future
impact cannot be predicted.
Future valuations of assets and liabilities may therefore differ as the market responds to these changing impacts or
assesses the impact of current requirements differently.
Board of Directors
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CoinShares Digital Securities Limited
Directors' Report
For the year ended 31 December 2025
Corporate Governance (continued)
Share Capital and voting rights
No person has a significant direct or indirect holding of securities in the Company. No person has any special rights of
control over the Company’s share capital. There are no restrictions on voting rights. The Company belongs to a group of
companies, the ultimate holding entity of which is CoinShares International Limited, incorporated in Jersey, Channel
Islands.
The Company’s issued share capital consists of 1 fully-paid share of £0.01, which is held by CoinShares International
Limited.
In addition, CoinShares International Limited has a number of policy documents and manuals, including the Code of
Conduct, the Corporate Governance Policy, the Insider Policy, and the Information and Communication Policy, as well as
other internal rules and recommendations that include principals and provide guidance in the company’s operations and
for its employees. These governance documents are evaluated and adopted annually by the Board of Directors. The
requirements arising from CoinShares International Limited’s shares being listed for trading on Nasdaq Stockholm
include the compulsory adoption of a corporate governance code. The guidelines of the Code are available on the
Swedish Corporate Governance Board’s website. As at the date of this Corporate Governance Report, the Company has
complied with the Code.
The Directors of the Company who are employees within the CoinShares Group do not receive separate remuneration in
their capacity as Directors of the Company. The non-executive director receives separate remuneration for their role
which is paid by CSJL as the Programme Manager however is recognised as an expense by the Company.
Director remuneration
Integration with CoinShares Group governance
During the year the Company did not have any direct employees or subsidiaries. The Company, being a special purpose
company established for the purpose of issuing Digital Securities, has not undertaken any business, save for issuing and
redeeming Digital Securities, entering into the required documents and performing the associated obligations, since its
incorporation.
The Company does not intend to undertake any business other than issuing and redeeming Digital Securities and
performing the associated obligations.
CoinShares International Limited is a Jersey, public limited liability company whose shares are listed for trading on
Nasdaq Stockholm and the ultimate parent company of CoinShares Digital Securities Limited. 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’s Nordic Main Market Rulebook for Issuers of Shares
and the Company’s internal rules and guidelines. The internal rules and guidelines include primarily the Board’s rules of
procedure, the CEO’s instructions, the instructions for financial reporting and internal control, and the finance manual.
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CoinShares Digital Securities Limited
Directors' Report
For the year ended 31 December 2025
Corporate Governance (continued)
Results and dividends
Events after the reporting date
Internal Control
The Group operates the Three Lines of Defence model, which is considered to be industry best practice and comprises
the following:
First Line of Defence: The client-facing operations teams are responsible for maintaining a strict control environment over
day-to-day operational matters. The first line has a comprehensive control framework, managed and maintained by them;
the framework spans both organisation wide controls and department specific controls.
Second Line of Defence: The Group’s Compliance Team has a number of key responsibilities including anti-money
laundering, countering of terrorism financing, regular testing of the Group’s control framework and liaising with the
Group’s various external regulatory bodies.
Third Line of Defence: The Group relies upon both the annual financial audit process in addition to more focused
specialised external work, undertaken on particular parts of the business, for example, the work undertaken by The
Network Firm, providing attestation reports on the assets held in support of the Group’s ETPs.
Audit Committee
The sole business of the Company relates to the issuing of asset-backed Digital Securities. Given the limited recourse
nature of the Digital Securities issued by the Company, the Board of Directors have concluded that there is currently no
need for the Company to have a separate audit committee in order for the Board to perform effective monitoring and
oversight of the internal control and risk management systems of the Company in relation to the financial reporting
process and the monitoring of the statutory audit and the independence of the statutory auditors.
Service level agreements
The Company and several of its service providers are subsidiaries of the CoinShares Group. Service Level Agreements
('SLAs') were signed by the companies from the CoinShares Group. The SLAs govern the relations between the entities
as well as their respective obligations.
The total comprehensive income for the year amounted to £nil (2024: £nil).
The directors do not recommend the payment of a dividend for the year (2024: £nil).
On 24 February 2026, the Company launched a new staking product, the CoinShares Hyperliquid Staking ETP ('LIQD').
The product is listed on the Xetra Exchange with a 0% management fee and 0.5% staking yield to ETP holders.
On 23 February 2026 the Company announced a reduction in the management fees for the CoinShares Bitcoin ETP
product. From 23 February 2026 the fees were reduced from 0.25% to 0.15%.
On 6 January 2026, the Company launched a new staking product, the CoinShares BNB Staking ETP ('CBNB'). The
product is listed on the SIX Swiss Exchange with a 0% management fee and 0.25% staking yield to ETP holders.
After the end of the financial year, a reorganization of the group structure was carried out. A new parent company,
CoinShares Plc, registration number 161481, with its registered office on Jersey, was established and is the ultimate
parent company of the group as of 31 March 2026.
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CoinShares Digital Securities Limited
Directors' Report
For the year ended 31 December 2025
Events after the reporting date (continued)
• 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.
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.
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'). 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 throughout the period.
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;
• state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements; and
Statement of Directors’ responsibilities
In preparing these financial statements, the directors are required to:
Subsequent to 31 December 2025 there has been a decline in the market prices of major digital assets. In particular:
The market price of Bitcoin decreased from £65,407 at 31 December 2025 to £56,224 as at 28 April 2026.
The market price of Ethereum decreased from £2,214 at 31 December 2025 to £1,681 as at 28 April 2026.
Based on holdings at 31 December 2025, the estimated fair value of the Company’s Bitcoin and Ethereum as at 28 April
2026 would be approximately £1,094,167,354 and £223,991,669, respectively.
The decline reflects market conditions arising after the reporting period.
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CoinShares Digital Securities Limited
Directors' Report
For the year ended 31 December 2025
Going concern
Corporate Governance Statement
Inde
p
endent Auditor
The Company has net assets of £nil (31 December 2024: £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. 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 due to the limited recourse arrangements under which the
Digital Securities are issued.
Directors' interest in shares
The Company is wholly owned by 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 Group website.
During the financial year, BDO LLP was appointed as the Company’s statutory auditor following the resignation of Baker
Tilly Channel Islands Limited. BDO LLP has expressed its willingness to continue in office.
The report was approved by the board of directors on 30 April 2026 and signed on its behalf by:
..........................................................
CoinShares Corporate Services (Jersey) Limited
Company Secretary
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, CoinShares International Limited ('CSIL').
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CoinShares Digital Securities Limited
Global Statement for the Financial Statements
For the year ended 31 December 2025
Global Statement for the Financial Statements
Kirsty Lawrence
Director
Date: 30 April 2026
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.
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Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes 1 to 19 to the financial statements
A summary of significant accounting policies
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CoinShares Digital Securities Limited
Statement of Comprehensive Income
For the year ended 31 December 2025
Restated
2025 2024
Note
££
Revenue 5 4,592,298 3,783,523
Gross profit 4,592,298 3,783,523
Administration expenses 6 (4,691,190) (3,751,848)
Fair value loss on digital assets 8 (78,613,338) -
Gain/(loss) on ETP liabilities 12 635,385,498 (917,939,495)
Gain/(loss) on digital asset payables 14 15,067,961 (11,107,139)
Gain/(loss) on foreign exchange 98,892 (31,675)
Operating profit 571,840,121 (929,046,634)
Finance income - -
Finance costs - -
Profit/(loss) before taxation 571,840,121 (929,046,634)
Taxation on profit/(loss) 7 - -
Profit/(loss) after taxation 571,840,121 (929,046,634)
8
Other comprehensive (loss)/income (571,840,121) 929,046,634
Total comprehensive income - -
The above should be read in conjunction with the accompanying notes on pages 22 to 46 which form an integral part of these
financial statements.
All results are derived from continuing operations.
Fair value (loss)/gain on digital assets through other comprehensive
income
929,046,634
(571,840,121)
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Statement of Financial Position
As at 31 December 2025
Restated Restated
2025 2024 1 January 2024
Note
££ £
ASSETS
Current assets
Digital assets 8 2,082,567,516 1,884,626,259 817,137,433
Trade and other receivables 9 644,569 581,644 662,066
Digital asset receivables 10 27,951 143,966 44,606
Cash and cash equivalents 11 78,515 11,991 4,910
Total assets 2,083,318,551 1,885,363,860 817,849,015
LIABILITIES
Current liabilities
ETP liabilities 12 2,057,822,538 1,853,618,389 807,441,130
Trade and other payables 13 723,082 593,635 666,976
Digital asset payables 14 24,772,931 31,151,836 9,740,909
Total liabilities 2,083,318,551 1,885,363,860 817,849,015
Net assets - - -
EQUITY
Share capital 15 - - -
Revaluation reserve (579,389,564) 925,677,805 98,335,045
Retained earnings 579,389,564 (925,677,805) (98,335,045)
Total equity - - -
Director
CoinShares Digital Securities Limited
Kirsty Lawrence
Date: 30 April 2026
The above should be read in conjunction with the accompanying notes on pages 22 to 46 which form an integral part of these financial statements.
The financial statements on pages 18 to 46 were approved and authorised for issue by the Board of Directors of the Company and signed on its
behalf by:
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Statement of Changes in Equit
y
For the year ended 31 December 2025
Ordinary Retained Revaluation
Shares Earnings Reserve Total equity
££££
At 1 January 2024 (restated)
- (98,335,045) 98,335,045 -
Loss for the year - (929,046,634) - (929,046,634)
Other comprehensive Income - - 929,046,634 929,046,634
Total comprehensive income - (929,046,634) 929,046,634 -
- 101,703,874 (101,703,874) -
At 31 December 2024 (restated)
- (925,677,805) 925,677,805 -
Profit for the year - 571,840,121 - 571,840,121
Other comprehensive loss - - (571,840,121) (571,840,121)
Total comprehensive income - 571,840,121 (571,840,121) -
- 7,549,443 (7,549,443) -
At 31 December 2025 - 579,389,564 (579,389,564) -
The above should be read in conjunction with the accompanying notes on pages 22 to 46 which form an integral part of
these financial statements.
CoinShares Digital Securities Limited
The Company has issued 1 share valued at £0.01.
Trans
f
er o
f
revaluation reserve
upon disposal of digital assets
Transfer of revaluation reserve
upon disposal of digital assets
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Statement of Cash Flows
For the year ended 31 December 2025
Restated
2025 2024
Note
££
Cash flows from operating activities
Profit/(loss) for the year 571,840,121 (929,046,634)
Adjustments for:
- (Gain)/loss on ETP liabilities
12
(635,385,498) 917,939,495
- (Gain)/loss on digital asset payables
14
(15,067,961) 11,107,139
- -
Change in working capital:
- Trade and other payables
13
66,524 7,081
Cash generated from operations 66,524 7,081
66,524 7,081
Net increase in cash and cash equivalents 66,524 7,081
At the beginning of the year 11,991 4,910
At the end of the year
11
78,515 11,991
Reconciliation of net debt
2025 2024
Non-cash analysis Note
££
Cash flows from operating activities
- Net increase in digital asset payables 8,689,056 10,303,788
- Net receipt of digital asset receivables 116,015 (99,360)
- Net issuance of ETP liabilities
12
839,589,647 128,237,764
- Net purchase of digital assets
8
(848,394,716) (138,442,192)
The above should be read in conjunction with the accompanying notes on pages 22 to 46 which form an integral part
of these financial statements.
CoinShares Digital Securities Limited
Cash flow generated from operating activities
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Notes to the Financial Statements
For the year ended 31 December 2025
1 General information
2 Significant accounting policies
2.1 Basis of preparation
2.2 Adoption of new and revised Standards
New and amended IFRS Standards that are effective for the current year
The following principal accounting policies have been applied:
Lack of Exchangeability (Amendments to IAS 21
)
The adoption of this amendment has not had any material impact on the disclosures or on the amounts
reported in these financial statements.
CoinShares Digital Securities Limited
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').
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 2025:
New and revised IFRS Standards in issue but not yet effective
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).
Certain amendments to accounting standards have been published that are not mandatory for 31 December
2025 reporting periods and have not been early adopted by the Company. These amendments are not
expected to have a material impact on the reported profit or loss, net assets or total equity of the Company in
the current or future reporting periods and on foreseeable future transactions.
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'), and the Companies (Jersey) Law 1991, as amended. There were no
material departures from IFRS.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
2 Significant accounting policies (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
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.
During the year the directors elected to change the accounting policy of its digital assets. The change has
resulted in the Group’s results being restated for 31 December 2024. This restatement has been reflected in all
pages of these financial statements. Further information can be found in note 3 of the financial statements.
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 due to the limited recourse arrangements
Foreign exchange gains and losses arising from translation are included in the Statement of Comprehensive
Income.
Transactions and balances
CoinShares Digital Securities Limited
The Company has net assets of £nil (31 December 2024: £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. 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.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
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.
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
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.
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.
CoinShares Digital Securities Limited
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.
Accounting 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.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
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
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 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:
Level 3 – Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
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. 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.
The Company has implemented a change to its accounting policy for digital assets. The change in accounting
policy and its resultant impact on prior periods has been outlined in note 3. Digital assets are accounted for as
an intangible asset under the revaluation model with an indefinite useful life. 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).
Level 1 – The unadjusted quoted price in an active market for identical assets or liabilities that the entity can
access at the measurement date.
CoinShares Digital Securities Limited
Sale of services (continued)
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 expenses of the Company are recognised on an accruals basis.
Fair value hierarchy
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
2 Significant accounting policies (continued)
2.11 Intangible assets - digital assets (continued)
2.12 ETP liabilities
2.13 Financial instruments
Financial Assets
If a 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.
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.
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
Digital assets have been classified as Level 1 as per note 2.10.
The Company has implemented a change to its accounting policy for ETP liabilities. The change in accounting
policy has been outlined in detail in note 3. The Company is an issuer of ETPs. The ETPs are described as per
the prospectus, publicly available on coinshares.com. A liability for an ETP is recognised on the settlement
date, being the date of the completion of the trade as per the prospectuses.
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.
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.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
2 Significant accounting policies (continued)
2.13 Financial instruments (continued)
Financial Assets (continued)
Financial liabilities
2.14 Taxation
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.
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.
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.
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.
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.
CoinShares Digital Securities Limited
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.
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.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
2 Significant accounting policies (continued)
2.14 Taxation (continued)
2.15 Share capital
2.16 Other reserves
Revaluation reserve
3 Prior year restatement - Digital assets, digital asset receivables, ETP liabilities and digital asset payable
s
CoinShares Digital Securities Limited
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.
Prior to restatement, realised gains arising from the disposal or derecognition of digital assets were recorded within the fair value
movement on digital assets and subsequently recognised within the Group's retained earnings. In accordance with IAS 38, once
gains on digital assets become realised on disposal or derecognition, the associated balance within the revaluation reserve must
be transferred directly to retained earnings. Accordingly, the Group has restated its comparative information to reclassify the
realised portion on disposal or derecognition of digital assets from the revaluation reserve to retained earnings.
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.
Net cumulative gains on digital assets held at fair value through other comprehensive income are shown in the
revaluation reserve. When digital assets are disposed of, the gains associated with those assets in the
revaluation reserve are transferred to retained earnings.
The Company has identified an error in the accounting policies, and as such, has reassessed the classification and accounting
treatment of its digital assets, digital asset receivables, ETP liabilities and digital asset payables in order to correct the error.
Previously, a hedge accounting relationship had been designated under IFRS 9, designating Digital Assets and digital asset
receivables as the hedged items and ETP liabilities and digital asset payables as the hedging instruments, whereby movements in
fair value of digital assets and digital asset receivables were offset against changes in the fair value of the digital asset payables
and ETP liabilities.
Following restatement, the ETP liabilities have been reclassified as they are predominantly settled in digital assets and therefore
do not meet the definition of financial liabilities under IFRS 9. Consequently, the related hedge accounting relationship has been
removed.
Impact of the restatement
The restatement results in digital asset price movements being recognised in Other Comprehensive Income (OCI) rather than in
profit or loss. Increases in the fair value of digital assets are recognised in other comprehensive income, unless the increase
reverses a revaluation loss previously recognised in profit and loss, in which case such an amount is recognised in profit and loss.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
3
31 December 2024
Line item
£££
Statement of Comprehensive Income
Loss on ETP liabilities -
(917,939,495)
(917,939,495)
Loss on digital asset payables -
(11,107,139)
(11,107,139)
Fair value gain on digital assets through other comprehensive income -
929,046,634
929,046,634
Statement of Financial Position
Digital assets held for collateral purposes 1,884,626,259
(1,884,626,259)
-
Digital assets -
1,884,626,259
1,884,626,259
Statement of Changes in Equity
Accumulated deficit -
(925,677,805)
(925,677,805)
Other reserves -
925,677,805
925,677,805
1 January 202
4
£££
Line item
Statement of Financial Position
Digital assets held for collateral purposes 817,137,433
(817,137,433)
-
Digital assets -
817,137,433
817,137,433
Statement of Changes in Equity
Accumulated deficit -
(98,335,045)
(98,335,045)
Other reserves -
98,335,045
98,335,045
4 Operating segments
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.
• Index Digital Securities; and
• Digital Securities with a management fee;
Quantitative impact
• Staked Digital Securities;
As previously
reported
Restatement
adjustment
• Central costs
The Company monitors its assets and liabilities according to four core operating segments, defined by the primary characteristics
of ETPs. The Company deems that it has four reportable operating segments in respect of assets and liabilities, being:
As restated
As restated
Restatement
adjustment
As previously
reported
CoinShares Digital Securities Limited
Prior year restatement - Digital assets, digital asset receivables, ETP liabilities and digital asset payables (continued)
The following tables summarise the reclassification effect for the year ended 31 December 2024:
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
4 Operating segments (continued)
2025
Digital Securities with Staked Digital Index Digital Central
a Management Fee Securities Securities Costs Total
££ £ £ £
Revenue 1,149,208 2,645,402 156,851 640,837 4,592,298
Gross profit 1,149,208 2,645,402 156,851 640,837 4,592,298
Administration expenses (1,149,208) (2,645,402) (156,851) (739,729) (4,691,190)
Gain/(loss) on digital assets - (78,613,338) - - (78,613,338)
Gain on ETP liabilities 264,583,860 365,680,403 5,121,235 - 635,385,498
Gain/(loss) on digital asset payables 188,629 14,882,006 (2,674) - 15,067,961
Gain on foreign exchange - - - 98,892 98,892
Operating profit 264,772,489 301,949,071 5,118,561 - 571,840,121
Profit before taxation 264,772,489 301,949,071 5,118,561 - 571,840,121
Taxation on profit - - - - -
Profit after taxation 264,772,489 301,949,071 5,118,561 - 571,840,121
(264,772,489) (301,949,071) (5,118,561) - (571,840,121)
Other comprehensive loss (264,772,489) (301,949,071) (5,118,561) -
(571,840,121)
Total comprehensive income - - - - -
Fair value loss on digital assets
The following is an analysis of the Company's revenues and expense by reportable segment in the period ended 31 December
2025.
CoinShares Digital Securities Limited
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
4 Operating segments (continued)
2024 (restated)
Digital Securities with Staked Digital Index Digital Central
a Management Fee Securities Securities Costs Total
££ £ £ £
Revenue 867,598 2,145,791 115,065 655,069 3,783,523
Gross profit 867,598 2,145,791 115,065 655,069 3,783,523
Administration expenses (867,598) (2,145,791) (115,065) (623,394) (3,751,848)
Loss on ETP liabilities (702,832,277) (212,572,301) (2,534,917) - (917,939,495)
(Loss)/gain on digital asset payables (126,957) (10,980,664) 482 - (11,107,139)
Loss on foreign exchange - - - (31,675) (31,675)
Operating loss (702,959,234) (223,552,965) (2,534,435) - (929,046,634)
Loss before taxation (702,959,234) (223,552,965) (2,534,435) - (929,046,634)
Taxation on loss - - - - -
Profit after taxation (702,959,234) (223,552,965) (2,534,435) - (929,046,634)
702,959,234 223,552,965 2,534,435 - 929,046,634
Other comprehensive income 702,959,234 223,552,965 2,534,435 - 929,046,634
Total comprehensive income - - - - -
The following is an analysis of the Company's revenues and expense by reportable segment in the period ended 31 December
2024.
CoinShares Digital Securities Limited
Fair value gain on digital assets
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
4 Operating segments (continued)
2025
Digital Securities with Staked Digital Index Digital Central
a Management Fee Securities Securities Costs Total
££ £ £ £
Digital assets 1,466,461,526 592,548,862 23,557,130 (2) 2,082,567,516
Trade and other receivables - - - 644,569 644,569
Digital asset receivables - 27,951 - - 27,951
Cash and cash equivalents - - - 78,515 78,515
Total assets 1,466,461,526 592,576,813 23,557,130 723,082 2,083,318,551
ETP Liabilities 1,466,027,884 568,314,499 23,480,155 - 2,057,822,538
Trade and other payables - - - 723,082 723,082
Digital asset payables 433,642 24,262,314 76,975 - 24,772,931
Total liabilities 1,466,461,526 592,576,813 23,557,130 723,082 2,083,318,551
Net assets - - - - -
2024 (restated)
Digital Securities with Staked Digital Index Digital Central
a Management Fee Securities Securities Costs Total
££ £ £ £
Digital assets 1,191,601,561 678,082,975 14,941,723 - 1,884,626,259
Trade and other receivables - - - 581,644 581,644
Digital asset receivables - 143,966 - - 143,966
Cash and cash equivalents - - - 11,991 11,991
Total assets 1,191,601,561 678,226,941 14,941,723 593,635 1,885,363,860
ETP Liabilities 1,191,224,830 647,505,465 14,888,094 - 1,853,618,389
Trade and other payables - - - 593,635 593,635
Digital asset payables 376,731 30,721,476 53,629 - 31,151,836
Total liabilities 1,191,601,561 678,226,941 14,941,723 593,635 1,885,363,860
Net assets - - - - -
The following is an analysis of the Company's assets and liabilities by reportable segment as at 31 December 2024.
The following is an analysis of the Company's assets and liabilities by reportable segment as at 31 December 2025.
CoinShares Digital Securities Limited
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
5 Revenue
Restated
2025 2024
££
Fee income 4,592,298 3,782,893
Other income - 630
4,592,298 3,783,523
6 Administration expenses by nature
2025 2024
££
A
uditors' remuneration (1) 70,000 64,090
Custody fees 2,891,477 2,206,830
Legal fees 83,746 190,428
Marketing fees 5,648 105,332
Professional fees 755,606 545,714
Trading expenses 811,062 588,241
Director fees 15,000 15,000
General expenses 58,651 36,213
4,691,190 3,751,848
7 Taxation
The Company is subject to tax at the rate of 0% (2024: 0%).
CoinShares Digital Securities Limited
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.
Revenue on products is recognised in CSJL and CSCMJL as programme manager and staking agent respectively.
Included within administration expenses of £4,691,190 (2024: £3,751,848) are the following amounts:
Other Income consists solely of ETP creation and redemption fees incurred by the Company and subsequently recharged to
Authorised Participants.
(1) The auditors’ remuneration disclosed for the prior year relates to fees paid to the Company’s previous auditor, who resigned
during the current financial year. BDO LLP was appointed in the current year, and the current year figure reflects fees payable
to the auditor in respect of services provided during the period.
Page 33
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
8 Digital assets
Restated Restated
2025 2024 2025 2024
Number Number £ £
By Currenc
y
Bitcoin 19,461 13,766 1,272,881,980 1,045,510,155
Ethereum 133,256 118,188 294,980,361 321,300,667
Litecoin 130,286 114,877 7,526,008 9,494,786
XRP 123,007,506 69,350,796 169,894,685 117,284,370
Polkadot 3,395,937 1,978,606 4,573,088 10,784,508
Tezos 22,018,002 4,594,909 8,312,946 4,894,039
Cardano 52,160,945 36,964,845 13,333,639 25,591,295
Solana 2,767,830 1,855,100 257,778,808 291,828,271
Chainlink 1,277,410 771,445 11,754,887 12,824,166
Uniswap 794,635 595,340 3,457,887 6,488,083
Cosmos 983,669 397,695 1,426,609 2,043,374
Mati
c
34,771,481 15,802,279 2,631,195 5,923,966
A
lgorand 83,684,482 56,598,171 6,965,307 15,716,856
SEI 20,054,219 - 1,683,189 -
Toncoin 710,896 - 863,720 -
Binance Coin 1,475 - 946,077 -
Digital asset - COIN10 7,514,973 3,098,836
Digital asset - COINSMRT 1,814,218 2,763,735
Digital asset - CFTN 14,227,939 9,079,152
2,082,567,516 1,884,626,259
Restated Restated
2025 2024 2025
2024
Number Number £ £
COIN10
Ethereum 1,181 335 2,614,385 910,769
Bitcoin 42 13 2,747,299 975,994
XRP 715,307 285,661 987,963 483,103
Solana 6,398 2,156 595,902 339,126
Cardano 462,717 179,003 118,282
123,927
Tron 982,948 407,173 206,420 83,208
Chainlink 8,589 2,998 79,037 49,840
Stellar Lumens 377,139 - 57,523 -
A
valanche 6,022 1,910 55,834 55,880
Litecoin 906 - 52,328 -
Polkadot - 7,150 - 38,974
Uniswap - 3,488 - 38,015
7,514,973 3,098,836
CoinShares Digital Securities Limited
Inde
x
products comprise a numbe
r
of underlying Digital
A
ssets in each product.
A
s at yea
r
end the balance of the inde
x
ETP
products comprised the following:
Page 34
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
8 Digital assets (continued)
Restated Restated
2025 2024 2025
2024
Number Number £ £
COINSMRT
Ethereum 308 319 681,434 867,262
Solana 6,211 5,343 578,454 840,513
Cardano 448,782 443,808 114,720 307,255
Tron 952,991 1,008,932 200,129 206,182
Chainlink 8,327 7,429 76,626 123,492
Stellar Lumens 365,642 347,779 55,769 93,986
A
valanche 5,839 4,733 54,132 138,462
Polkadot 19,722 17,770 26,559 96,858
Near Protocol 15,120 13,269 16,980 53,972
Mati
c
124,417 95,371 9,415 35,753
1,814,218 2,763,735
CFTN
Bitcoin 158 86 10,352,407 6,506,601
Ethereum 1,024 535 2,266,370 1,455,651
XRP 524,373 263,126 724,250 444,992
Solana 4,639 2,044 432,023 321,514
Cardano 321,944 160,956 82,297 111,432
Tron 806,318 359,862 169,327 73,540
Chainlink 5,740 2,844 52,821 47,272
A
valanche 3,785 1,736 35,092 50,799
Stellar Lumens 266,229 - 40,606 -
Polkadot - 6,557 - 35,737
Bitcoin Cash 164 88 72,746 31,614
14,227,939 9,079,152
23,557,130 14,941,723
Restated
2025 2024
££
Reconciliation of Digital Assets
Digital assets as at 1 Januar
y
1,884,626,259 817,137,433
A
dditions to digital assets 1,417,416,218 484,452,605
Net staking rewards 21,672,048 16,963,457
Disposals of digital assets (583,228,980) (358,636,032)
Management fees paid to CSJL (7,464,570) (4,337,838)
Fair value (loss)/gain on digital assets (650,453,459) 929,046,634
Digital assets closing balance 2,082,567,516 1,884,626,259
CoinShares Digital Securities Limited
On 28 Jul
y
2025, the Compan
y
launches the CS Physical Staked SEI ETP. This product is listed on the SI
X
Swiss Exchange,
has a management fee of 0% and offers a staking reward of 2% to ETP holders.
On 14 January 2025 the Company announced a reduction in the management fees for the CoinShares Physical Bitcoin ETP
product which reduced fees from 0.35% per annum to 0.25% per annum.
Page 35
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
8 Digital assets (continued)
9 Trade and other receivables
2025 2024
££
A
mounts owed by Group undertaking
s
620,149 527,819
Prepayments and sundry debtor
s
24,420 53,825
644,569 581,644
10 Digital asset receivables
2025 2024 2025 2024
Number Number
££
Amounts owed by third parties
Staking rewards - Algorand
335,818
518,438 27,951 143,966
27,951 143,966
2025 2024
Reconciliation of digital asset receivables £ £
Digital asset receivables as at 1 Januar
y
143,966 44,606
Increase in digital asset receivables 27,951 143,966
Settlement of digital asset receivables (143,966) (44,606)
Digital asset receivables closing balance 27,951 143,966
Fee income of £4,592,298 (2024: £3,782,893) was earned from CSJL, as programme manager, to cover the Company's
expenses as per the Service Level Agreement, of which £620,149 (31 December 2024: £527,819) was outstanding at year end.
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 £27,951 (2024: £143,966) in respect of accrued staking rewards.
CoinShares Digital Securities Limited
Management has undertaken a review of the credit loss and calculated that the risk of credit loss to be clearly trivial.
Expected credit losses
On 28 October 2025, the Company launched the CS Physical Staked Toncoin ETP. This product is listed on the SIX Swiss
Exchange, has a management fee of 0% and offers a staking reward of 2% to ETP holders.
Page 36
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
11 Cash and cash equivalents
2025 2024
££
Cash at bank 78,515 11,991
78,515 11,991
12 ETP liabilities
2025 2024 2025 2024
Number Number £ £
Securities type
CoinShares Bitcoin ETP
19,988,307
14,055,086
1,272,692,550
1,045,310,143
CoinShares Ethereum Staking ETP
4,386,673
3,938,190
294,651,707
320,932,301
CoinShares Litecoin ETP
698,920
607,000
7,516,436
9,482,593
CoinShares XRP ETP
3,298,284
1,831,780
169,679,555
117,143,738
CoinShares Polkadot Staking ETP
2,775,000
1,698,100
4,526,452
10,677,276
CoinShares Tezos Staking ETP
3,760,900
839,000
7,950,771
4,871,644
CoinShares Cardano Staking ETP
47,690,625
34,472,500
13,325,089
25,574,702
CoinShares Solana Staking ETP
23,560,223
16,181,100
234,334,539
262,859,709
CoinShares Chainlink ETP
13,483,400
8,021,000
11,739,839
12,808,282
CoinShares Uniswap ETP
8,387,500
6,190,000
3,453,427
6,480,074
CoinShares Cosmos Staking ETP
1,630,500
694,500
1,404,491
2,018,473
CoinShares Polygon Staking ETP
3,101,500
1,443,500
2,630,001
5,916,163
CoinShares Algorand Staking ETP
7,794,700
5,026,000
6,948,656
14,655,197
CoinShares SEI Staking ETP
1,985,000
-
1,680,209
-
CoinShares Toncoin Staking ETP
1,415,000
-
862,584
-
CoinShares BNB Staking ETP
295,000
-
946,077
-
CoinShares Top 10 Crypto Marke
t
332,600 114,000
7,497,641
3,088,774
CoinShares Smart Contract 119,000 121,000
1,802,405
2,741,429
CoinShares Finanzen.net Top 10 Crypto 1,394,500 730,000
14,180,109
9,057,891
146,097,632 95,962,756 2,057,822,538 1,853,618,389
2025 2024
££
Reconciliation of ETP liabilities
ETP liabilities as at 1 January 1,853,618,389 807,441,130
Creations of ETPs 1,417,425,671 483,411,138
Redemptions of ETPs (582,180,697) (358,428,004)
Net movement on staking rewards 9,811,675 5,692,018
Net movement on management fee (5,467,002) (2,437,388)
Fair value (gain)/loss (635,385,498) 917,939,495
ETP liabilities closing balance 2,057,822,538.00 1,853,618,389
CoinShares Digital Securities Limited
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
12 ETP liabilities
(
continued
)
2025 2024
££
Gain/(loss) on ETPs to CSCMJL and Third Parties 140,326,357 (343,718,126)
Gain/(loss) on other ETP liabilities 495,059,141 (574,221,369)
Total gain on ETP liabilities 635,385,498 (917,939,495)
13 Trade and other payables
Restated
2025 2024
££
Trade payables 21,617 16,023
A
mounts payable to ultimate parent compan
y
141,227 -
A
ccrued liabilities 560,238 577,612
723,082 593,635
CoinShares Digital Securities Limited
Amounts owed to the ultimate parent company, CSIL, of £141,227 (31 December 2024: £nil) consist of expenses settled on
behalf of the Company. These amounts are repayable on demand, bear interest at 0% and are unsecured.
Page 38
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
14 Digital asset payables
2025 2024 2025 2024
Number Number £ £
Amounts payable to Group undertaking
s
CSJL - Bitcoin
3
3
189,432
200,013
CSJL - Litecoin
166
148
9,572
12,193
CSJL - XRP
155,759
83,156
215,130
140,632
CSJL - Solana
1,356
1,494
126,286
235,021
CSJL - Chainlink
1,635
956
15,048
15,884
CSJL - Uniswap
1,025
735
4,460
8,009
CSJL - CFTN
-
-
47,830
21,261
CSCMJL - Ethereum
148
136
328,654
368,366
CSCMJL - Polkado
t
34,632
19,674
46,636
107,231
CSCMJL - Tezos
23,274
21,026
8,787
22,395
CSCMJL - Cardano
33,447
23,968
8,550
16,593
CSCMJL - Cosmos
15,251
4,846
22,118
24,901
CSCMJL - Solana
6,795
3,417
632,852
537,532
CSCMJL - Mati
c
15,774
20,816
1,194
7,803
CSCMJL - Algorand
535,872
4,341,591
44,602
1,205,625
CSCMJL - SEI
35,504
-
2,980
-
CSCMJL - TON
935
-
1,136
-
CSCMJL - COIN10
-
-
17,332
10,062
CSCMJL - COINSMRT
-
-
11,813
22,306
1,734,412 2,955,827
Amounts payable to third partie
s
Third parties - Solana
243,575
179,237
22,685,131
28,196,009
Third parties - Tezos
935,998
-
353,388
-
23,038,519 28,196,009
24,772,931 31,151,836
2025 2024
££
Reconciliation of digital asset payables
Digital asset payables as at 1 Januar
y
31,151,836 9,740,909
Increase in digital asset payables 30,945,749 24,313,809
Settlement of digital asset payables (22,256,693) (14,010,021)
(Gain)/loss on digital asset payables (15,067,961) 11,107,139
Digital asset payables closing balance 24,772,931 31,151,836
Amounts owed to 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, assets provided by CSCMJL to test future digital asset products or
assets provided by CSMJL to satisfy redemptions in CoinShares ETP Products during asset unstaking periods. These amounts
are denominated in the relevant digital asset.
Amounts owed to third parties relate to fees where seed capital has been provided for products. These amounts are
denominated in the relevant digital asset.
CoinShares Digital Securities Limited
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
15 Share capital
Shares classified as equit
y
2025 2024 2025 2024
Number Number £ £
Ordinary shares of £0.01 each 1 1 - -
1 1 -
16 Risk management
a) Market risk
i) Interest rate risk
ii) Digital asset price risk
iii) Currency ris
k
Allotted, called-up and paid
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 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.
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 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.
GBP is the functional currency of the Company. From time to time the Company may incur operational expenses which are
billed in foreign currencies, such as USD and EUR. All expenses of the Company are settled by CSJL through the issuance of
fees, the Company therefore has limited exposure to currency risk.
-
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.
CoinShares Digital Securities Limited
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
16 Risk management (continued)
a) Market risk (continued)
i) Interest rate risk (continued)
Price change Price change
-50% 100%
£££
Assets
Bitcoin 1,272,881,980 636,440,989 2,545,763,960
Ethereum 294,980,361 147,490,181 589,960,722
Litecoin 7,526,008 3,763,004 15,052,016
XRP 169,894,685 84,947,337 339,789,372
Polkadot 4,573,088 2,286,544 9,146,176
Tezos 8,312,946 4,156,473 16,625,892
Cardano 13,333,639 6,666,820 26,667,278
Solana 257,778,808 128,889,404 515,557,616
Chainlink 11,754,887 5,877,444 23,509,774
Uniswap 3,457,887 1,728,944 6,915,774
Cosmos 1,426,609 713,305 2,853,218
Mati
c
2,631,195 1,315,598 5,262,390
A
lgorand 6,965,307 3,482,654 13,930,614
SEI 1,683,189 841,595 3,366,378
Toncoin 863,720 431,860 1,727,440
Binance Coin 946,077 473,039 1,892,154
Digital asset - COIN10 7,514,973 3,757,487 15,029,946
Digital asset - COINSMRT 1,814,218 907,109 3,628,436
Digital asset - CFTN 14,227,939 7,113,970 28,455,878
Digital asset receivables 27,951 13,976 55,902
Trade and other receivables and cash 723,084 723,084 723,084
Total assets 2,083,318,551 1,042,020,817 4,165,914,020
Liabilities
ETP liabilities 2,057,822,538 1,028,911,269 4,115,645,076
Digital assets payables 24,772,931 12,386,466 49,545,862
Trade and other payables 723,082 723,082 723,082
Total liabilities 2,083,318,551 1,042,020,817 4,165,914,020
Net assets - - -
Carrying amount
as at 31
December 2025
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.
CoinShares Digital Securities Limited
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
16 Risk mana
g
ement
(
continued
)
b) Credit risk
c) Liquidity risk
d) Capital risk management
e) Operational risk
Liquidity risk associated with the payment of suppliers is mitigated through the arrangement whereby expenses of the Company
are settled by CSJL through the issuance of fees as agreed in the Service Level Agreement dated 21 May 2021.
The capital of the Company is nil. The Company's objective is to undertake the issuance and redemptions of Digital Securities
and performing the associated obligations for the Group, in the interest of benefitting the shareholders of the ultimate parent
company. This is achieved through frequent evaluation of the Company's products to ensure they meet investor demands.
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.
Liquidity risk is the risk that the Company will encounter difficulties in meeting obligations associated with financial liabilities, in
particular towards security holders. Digital assets and ETP liabilities are not financial instruments however there is an active
market and they are readily realisable on demand.
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 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.
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 Company's primary banking relationship is with
Barclays Bank PLC, which holds a credit rating of 'A+' with Fitch Ratings.
In order for customers to purchase Digital Securities, Digital Assets are required to be deposited with the Company prior to the
issuance of the Digital Securities. The risk of losing Digital Assets in digital wallets due to fraud is reduced through digital assets
being kept in cold storage with custodians, who provide a cold storage vault. The Company does not expect to incur material
credit losses in respect of digital assets.
Credit risk arising from the ETP creation process is mitigated by the fact that Digital Securities are issued to counterparties only
after the underlying Digital Assets have been received. Management Fees and Staking Rewards recognised by the Programme
Manager and Staking Agent respectively are deducted from amounts held in relation to the ETPs, therefore not relying on
counterparties.
CoinShares Digital Securities Limited
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
16 Risk mana
g
ement
(
continued
)
e
)
O
p
erational risk
(
continued
)
17 Related party transactions
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Subsidiary
Subsidiary
The Group consists of the Company and the following entities held by the ultimate parent company, CSIL:
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). Custodians 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.
Name Defined as
Investee
Relationship
CSIL's Ownership
%
Jurisdiction Date of Acquisition
The risk of hacking, and losing Bitcoin/Ethereum and other digital assets in digital wallets due to fraud is reduced through the
majority of the digital assets being kept in cold storage with Komainu and Zodia, who provide access to a cold storage vault.
Komainu has a SOC 1 Type 2 report, the latest covering the period from 1 December 2024 to 30 November 2025. Zodia has a
SOC 1 Type 1 report and a SOC 1 Type 2 report for the period 1 January 2025 to 30 September 2025. Both Komainu and Zodia
are also ISO27001 certified.
CoinShares Digital Securities Limited
100% Sweden 25/09/2017
CoinShares Corporate
Services (Jersey) Limited
25/06/2018CSCSJL 100% JerseySubsidiary
XBTPCoinShares XBT Provider
CoinShares Co CSCo 100% USA 01/07/2018
CSJL
CSESJL
26/09/2018
09/08/2018Subsidiary
BNM BTC MF
CoinShares Capital Markets
(Jersey) Limited
CSCMJL
100%
CoinShares Asset
Management
CoinShares France
100%
Jersey
Jersey
France
Subsidiary
Subsidiary
Flowbank
CSGPI
CoinShares (Jersey)
Limited
CoinShares Employment
Services (Jersey) Limited
CoinShares Bastion Market
Neutral BTC Master Fund
Limited
CoinShares Bastion Market
Neutral BTC Feeder Fund
Limited
Subsidiary 100%
FlowB Holding Switzerland
SA
CoinShares GP I LLC
CSAM
CSF
100%
CoinShares Capital Markets
(UK) Limited
CSCMUKL
100%
100%
17/12/2021
CoinShares Capital, LLC CS Cap
100%
100%
18/09/2019
100%
20/03/2020
30/06/2019
30/06/2019
UK
Jersey
17/12/2021
02/10/2021
Jersey
Jersey
France
27/02/2023
27/02/2023
Switzerland
USA
USA
28%
BNM BTC FF 100%
Subsidiary
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
17 Related party transactions (continued)
Subsidiary
Subsidiary
Subsidiary
Subsidiary
CoinShares Ethereum US Feeder Fund, LP was dissolved on 8 August 2025
CoinShares Ethereum GP Limited was dissolved on 14 October 2025.
CoinShares Ethereum Integrated Strategies Master Fund Limited was dissolved on 18 November 2025.
CoinShares Ethereum Integrated Strategies Feeder Fund Limited was dissolved on 18 November 2025.
Valkyrie Funds LLC VF LLC 100% USA 12/03/2024
Name Defined as
Investee
Relationship
CoinShares Relative Value
Opportunities US Feeder
Fund, LP
USA
CoinShares Bitcoin US
Feeder Fund, LP
USA
RVO US
Feeder
BIS US
Feeder
Subsidiary
Subsidiary
Jersey 29/11/2023
27/07/2023100%
100%
CSIL is the Company's ultimate parent company. CSIL has settled costs of £144,131 (2024: £422,421), and at year end, there is
an outstanding payable of £141,227 (31 December 2024: £nil).
UK
05/06/2023
GABI Trading Asia Limited was dissolved on 28 March 2025
Larks Leaf Asset Management (Jersey) Limited was dissolved on 9 March 2025.
Subsidiary
Subsidiary
CoinShares Digital Securities Limited
On 3 April 2025 the whole of the issued share capital of CoinShares GP II Limited was sold.
100%
100%
100%
CoinShares Switzerland AG
CoinShares Bastion Market
Neutral USD Feeder Fund
Limited
CoinShares Bastion Market
Neutral USD Master Fund
Limited
CSSAG
CSIL's Ownership
%
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 £32,137 (2024: £597,723) and has been charged fees of £4,592,298
(2024: £3,782,893). As at the year end, the Company has an outstanding receivable of £620,149 (31 December 2024:
£660,295). 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 14.
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 year end, the Company also has
receivables and payables with CSCMJL as detailed in notes 10 and 14.
03/12/2024
Switzerland
Jersey
Jersey
Jurisdiction
24/05/2023
Date of Acquisition
CoinShares Bastion Market
Neutral BTC GP Limited
SubsidiaryBNM USD GP
BNM BTC GP
100%
100%
Jersey 29/11/2023
CoinShares Bastion Market
Neutral USD GP Limited
06/04/2023
06/04/2023
BNM USD FF
BNM USD MF
Circa5000 ICAV Circa5000 100%
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
17 Related party transactions (continued)
31 Decembe
r
31 Decembe
r
31 Decembe
r
2025 2025 2025
Digital assets Securities issued £
Seeded by CSCMJL
Bitcoin 5,500 5,500,000 359,741,100
Ethereum 35,154 1,135,000 77,817,832
437,558,932
31 Decembe
r
31 Decembe
r
31 Decembe
r
2024 2024 2024
Digital assets Securities issued £
Seeded by CSCMJL
Bitcoin 5,500 5,500,000 417,725,920
Ethereum 34,647 1,135,000 94,188,735
511,914,655
18 Events after the reporting date
After the end of the financial year, a reorganization of the group structure was carried out. A new parent company, CoinShares
Plc, registration number 161481, with its registered office on Jersey, was established and is the ultimate parent company of the
group as of 31 March 2026.
Subsequent to 31 December 2025 there has been a decline in the market prices of major digital assets. In particular:
The market price of Bitcoin decreased from £65,407 at 31 December 2025 to £56,224 as at 28 April 2026.
The market price of Ethereum decreased from £2,214 at 31 December 2025 to £1,681 as at 28 April 2026.
Based on holdings at 31 December 2025, the estimated fair value of the Company’s Bitcoin and Ethereum as at 28 April 2026
would be approximately £1,094,167,354 and £223,991,669, respectively.
The decline reflects market conditions arising after the reporting period.
CoinShares Digital Securities Limited
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 £2,891,477 (2024: £2,206,830), of
which £nil (31 December 2024: £266,563) remains outstanding at the year end.
On 24 February 2026, the Company launched a new staking product, the CoinShares Hyperliquid Staking ETP ('LIQD'). The
product is listed on the Xetra Exchange with a 0% management fee and 0.5% staking yield to ETP holders.
On 6 January 2026, the Company launched a new staking product, the CoinShares BNB Staking ETP ('CBNB'). The product is
listed on the SIX Swiss Exchange with a 0% management fee and 0.25% staking yield to ETP holders.
On 23 February 2026 the Company announced a reduction in the management fees for the CoinShares Bitcoin ETP product.
From 23 February 2026 the fees were reduced from 0.25% to 0.15%.
During the year, Directors charged fees of £15,000 (2024: £15,000), of which £nil (2024: £nil) remains outstanding at the year
end.
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Notes to the Financial Statements (continued)
For the year ended 31 December 2025
19 Ultimate controlling party
Audited annual financial statements for the ultimate controlling party are available at the Company's website:
www.coinshares.com/investor-relations
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.
CoinShares Digital Securities Limited
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Doc ID: f0770dac2f7f3e58f05df562a8b197965f7ae429