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21.co has built a legacy for itself in the crypto space, especially amongst institutional investors.
Switzerland-based digital currency investment firm, 21.co, the parent company of 21Shares has raised the sum of $25 million in new funding to maintain its tag as one of the most financially liquid firms in the crypto space. As reported by Reuters, the funding round was led by Marshall Wace and it enjoined participation from top investors including Collab+Currency, Quiet Ventures, ETFS Capital, and Valor Equity Partners.
The funding round which was the first the company will be completed in two years is like a vote of confidence for the firm, considering the general onslaught that the broader cryptocurrency industry has recorded thus far. The market went into a freefall when LUNA crashed in May. The unprecedented plunge affected a number of major industry players including Three Arrows Capital (3AC), Voyager Digital, and Celsius Network.
With bankruptcy the order of the day, the investor’s interest in crypto firms became tapered down, and while new startups keep raising funds, it was formally centered on outfits that are building infrastructures for the emerging Web3.0 world.
That 21.co, an investment service provider backed by investors testifies to the startup’s good books and its ability to stay resilient during key market downturns.
Besides acknowledging that it ended the 2021 financial year “on a nine-figure revenue run rate and has seen sustained inflows, even during down markets,” 21.co said its Assets Under Management (AUM) as of November last year topped $3 billion. It also noted that it recorded $650 million in Net Assets in the year through September 2021.
Thus far, 21.co has built a legacy for itself in the crypto space, especially amongst institutional investors. The company is one of the leading providers of Exchange Traded Products (ETPs) with extensions to both the European and United States markets.
21.co and the Plans for the New Funding
As for a firm that is cash flow positive, the $25 million capital funding will arguably give it a more competitive edge among its peers.
“With this round of financing, 21.co will continue to drive rapid, targeted growth through first-of-their-kind products, key market expansions, and strategic talent acquisitions,” 21.co said in a statement.
With many of its competitors currently weighed down by the downtime in the crypto market, 21.co will need to step up on all aspects of its business operations to capture a fair share of the spilling customers. Accordingly, increasing the size of its workforce has been tagged as one of the plans it has for the money.
“To support this rapid business growth, 21.co grew its headcount 75% during this period,” it said.
With the United Arab Emirates one of the major regions it hopes to expand to, the company said it recently appointed Sherif El-Haddad as its head of the Middle East and will be based in Dubai. The move was highly calculated considering the UAE has a robust framework for cryptocurrencies and is attracting global players in the industry.