The hedge fund titan Alan Howard’s crypto market business, Elwood, has opted for seeing its economic interest in blockchain funds. It has sold its blockchain fund with more than $1B of assets to CoinShares International Ltd.

This deal is part of the agreement of Coinshares to buy Elwood’s indexing business for $17 million. However, the operation of the blockchain exchange-traded fund of this unit will not get impacted due to the sale. Howard is the majority owner of Elwood.

For Elwood, this deal marks a transition away from asset management to focus on the tech platform. It enables institutions like fintech, banks, and asset managers to access the trade of crypto assets across exchanges. As part of this agreement, this equity research unit will join CoinShares and focus on crypto and stocks related to blockchain.

Elwood has helped to start the exchange-traded fund in 2019. It invests in companies that are developing blockchain technology. The ledger tool was created to facilitate transactions for Bitcoin.

CoinShares was one of the first companies to make its debut as a crypto product. At the same time, the bitcoin, which was trading near $65000 this year, was about $400. The fortune of the firm moved in lockstep with a surge of popularity of cryptos. In the past year, assets have swelled up to $3.3 billion from $696 million.

CoinShares has been trying to model the future of the industry. This blockchain fund was needed to complement their suite of products. As crypto tracking products in Europe and a bitcoin ETF were set up in February in Canada, the US regulators batted away the attempts of introducing them. It has cited concerns about the potential manipulation of the currency and limited liquidity. To work around this regulatory resistance, some firms have created Bitcoin-adjacent products, which include blockchain funds.

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