Coinshares International Ltd

STO:CS

Earnings Call Transcript 2023-Q2

[Operator]

Thank you for standing by, and welcome to the CoinShares' Q2 Earnings Broadcast. [Operator Instructions] Please be advised that today's conference is being recorded.

I would like to hand the conference over to your host, Jeri-Lea Brown. Thank you.

[Jeri-Lea Brown, executive]

Thank you, operator. I would like to welcome you all to the CoinShares' 2023 Q2 Earnings Call and webcast. Speaking from management today will be Jean-Marie Mognetti, Chief Executive Officer; and Richard Nash, Chief Financial Officer.

All those joining today are encouraged to log into the live event where you'll be able to view the accompanying presentation during today's call. Alternatively, the results and a copy of the presentation are available to download from the Investor Relations section of the CoinShares' website. A replay of the webcast will be available for 30 days following the live call, and a transcript will be posted on the company's website as soon as it is available.

[Operator Instructions] Lastly, our safe harbor statement. CoinShares would like to remind everyone that, except for historical information contained herein, statements made on today's call and webcast that constitute forward-looking statements are based on currently available information. The company assumes no responsibility to update any such forward-looking statements, and I would like to point you to the risk factors associated with our business, which are detailed in our prospectus.

At this time, I will turn the call over to Jean-Marie.

[Jean-Marie Mognetti, executive]

Thank you, Jeri. The digital industry landscape experienced major changes during Q2 2023, particularly with 2 significant development. The first development was a series of regulatory action by U.S. bodies, particularly the SEC and the CFTC against key industry figures. With those [ use ] and enforcement action are poised to reshape how the U.S. perceived regulates cryptocurrency exchanges, custodians, token issuers and, to some degree, even software programmers. The ACC [indiscernible] indicate all crypto platforms must align their regulatory positions with the rest of the financial system. The era of exemption is far gone.

Despite the recent Ripple judgments for which appeal can be expected, the impact of these lawsuits could reach far and wide throughout the crypto industry. The changes could potentially limit access to already regulated entities like traditional finance institutions, who are used to navigate complex legal and regulatory environments. This could result in a form of regulatory gating, potentially preventing newer, smaller players from entering space.

Consequently, the crypto industry might lean more toward TradFi institution, drastically altering its core nature and crypto as we knew, know it. Some would say it is a necessary balance to accept in order to progress towards mass adoption. Some big players like Coinbase are growing and ambitious changes like CoinShares are well placed to convey and drive this mutation.

The second development is an increased willingness to get involved by TradFi institution. By the end of Q2 '23, BlackRock, Invesco, WisdomTree, VanEck and others all filed or refiled in the U.S. to offer a Bitcoin Spot ETF. This is clearly a sign that the institutionalization of the digital asset industry is a reality. These trends validate our pioneering role at CoinShares and support our initial thesis.

By blending together the best of reg tech and blockchain innovations, CoinShares is a perfect conduit for investors to effortlessly incorporate digital assets into the portfolios. We don't sell fixed income or equity strategies at CoinShares. We are focused on our crypto road map and our journey.

We are not satisfied to be only the European leader. We want to be the global alternative asset manager specialized in digital assets. We produce that digital assets will be only adopted through our traditional financial instrument designed by financial institution and available on preferred broker platform. CoinShares has been proud to lead the way in Europe, hoping this will unlock opportunities in other European markets where crypto has mostly been acquired to date through unregulated platform.

Looking forward, we expect increasing digital asset adoption among investors and anticipate higher demand from institutions and sophisticated investors, not only for better products, but also for liquid alts allocation. The world in general, has overstretched towards illiquid private market allocation and it feels like the time is right, supported by the overall global macro context to see a shift back to liquid alpha. With that regard, last quarter, we announced the launch of our active asset management unit in response to this demand. Progress on this new business is well underway with groundwork laid for the first strategy, which is already being run to gather data and establish a track record prior to a formal launch before the end of the year.

Okay. I'm already getting into the business item. Let's first look at our financial as it is customary, and I will share with you further update in my second part. So for now, over to Richard, our CFO, to speak about our Q2 2023 financials.

[Richard Nash, executive]

Thanks, Jean-Marie. So with a good part of 2023 already behind us, we are happy to report that the first half of the year has been positive. Unusually for the industry we operate in, things have been relatively stable over the last few months, and the stability in the wider market is reflected by the group's performance, which has been consistent year-to-date. We reported in our Q1 earnings that following the turbulence of 2022, we had seen our best quarter in a year, and Q2 has further improved on this, bringing us solid financials thus far for 2023.

Our 2 core business units have performed very well, evidencing the stability of the group's underlying business model, solid fee-generating AUM within our asset management products supported by a capital markets team able to leverage the group's balance sheet to generate further gains in income within the evolving market. Over Q2, the group generated revenue gains and other income totaling GBP 20.3 million, an improvement of approximately 30% on our Q1 figure of GBP 15.3 million.

ETP performance was split largely equally between asset management and capital markets. Importantly, this quarter-on-quarter increase in our top line has occurred against a stable cost base, thereby improving our adjusted EBITDA margin, which stands at 60% year-to-date.

As we've always stated, we aim to keep tight control over our costs in order to allow the growth of the wider market to have as close to a direct impact as possible on our bottom line performance. So our adjusted EBITDA for the quarter stands at GBP 12.8 million, bringing our year-to-date figure to GBP 21.3 million. While we're not yet back to the levels of performance we saw over the course of 2021, we are busy diversifying both our product suites and activities to fully benefit from the market.

Direct costs of the group comprised custody fees, trading fees and issuer expenses incurred by the 2 issuing entities of the group ETPs. These showed a quarter-on-quarter decrease in 2022. And then moving into 2023, we are seeing very consistent quarter-on-quarter direct costs, reflected by the relative stability of digital asset prices, and therefore, our AUM, and therefore, our custody and trading fees.

Admin expenses of the group, which were relatively consistent throughout 2022 at an average of approximately GBP 1.8 million per month, have remained stable and largely at this level moving into 2023 and at GBP 11.6 million for the first half of the year. We managed to keep the level of underlying cost of the business relatively consistent since mid-2021 against the backdrop of aggressive inflation and pricing pressure. The main cost for the business, representing approximately 70% of our admin expense, is, of course, our staff base, which currently stands at 86 individuals across our 4 locations.

So looking more closely at our asset management platform now. And as a reminder, the components of this business unit are XBT Provider ETPs, our CoinShares' Physical ETPs and the CoinShares' Blockchain Global Equity Index or BLOCK Index. The price recovery seen towards the end of Q1 brought us to levels that were largely maintained over Q2, leading to management fees arising from the group's asset management platform in Q2 of GBP 10.6 million, showing a small increase on Q1's figure of GBP 9.2 million. We have now seen management fee growth for 3 consecutive quarters. The CoinShares Physical product suite generated inflows over Q2 of GBP 27.9 million, bringing year-to-date inflows to just over GBP 47 million.

On the XBT side, and we previously acknowledged that the trend with an XBT of the outflows being largely stemmed, we saw minimal net outflow in the quarter of GBP 29.2 million and outflow year-to-date of GBP 56 million. The flows for both ETP product suites and those of our key competitors is published in our Weekly Digital Funds Flow Report, which is available on our website. And additionally, the level of AUM held within each of our products is disclosed and subject to daily attestation by Ledger Lens, an independent firm's solution embedded into our website designed to provide additional transparency and comfort to all of our stakeholders.

The overall gross profit margin of the group's asset management platform remains very healthy as can be seen on the slides. As a quick summary, as of the end of the quarter, the level of AUM across our 2 ETP platforms, XBT and CoinShares Physical, stood at approximately GBP 1.7 billion with an additional GBP 484 million of AUM within the BLOCK index. And this total figure of GBP 2.2 billion is up approximately 48% from the end of 2022, and up marginally from the end of Q1.

On to Capital Markets now. So the performance of the group's capital market business over Q2 2023 demonstrates the benefit that diversification of activities can bring and has resulted in total other income and gains of just under GBP 10 million. With the turbulence of 2022 behind us and the ongoing enhancements of the group's internal controls framework, we also achieved relatively consistent performance month-on-month and a stable gross profit margin for the quarter, which averages out at 80%.

Our staking income has yielded strong results for the quarter at just short of GBP 6 million, bringing the year-to-date total to approximately GBP 10 million. Delta neutral trading strategies of GBP 1.9 million have brought the year-to-date figure to approximately GBP 4.4 million, with the group taking advantage of opportunities arising from trading CME futures. Fixed income activities are also showing a marked increase on 2022. These levels have been achieved even against the backdrop of a far more selective approach to our lending counterparties following the events of 2022.

Liquidity provisioning of GBP 0.7 million arising from supporting the group's ETPs are down on Q1 due to decreased levels of flow on XBT. And as stated before, is due to the outflows being heavily stemmed when compared to previous periods.

So just while I provide some closing comments, as we usually do, we can take a look at the quarterly performance of the group since the start of 2020, which helps visualize the quarter in context. So 2022 performance has been solid. We managed to navigate without issue the banking turmoil that hit the sector in the first part of the year, and we're continuing to make constant improvements to our internal controls and our risk framework. We've always been focused on ensuring that our range of products and activities continues to evolve. And with the product suite of 90 ETPs and the capital markets team is continually diversifying its reach and its partnerships, we believe we are placed well to reap the benefits of what the remainder of the year may bring.

And finally, before I hand back to Jean-Marie, I'd just like to remind everyone that the information we've touched upon here and more is obviously included within the full earnings report that we released this morning.

[Jean-Marie Mognetti, executive]

Thank you, Richard. As usual, now, let's take a look by business line. So first, let's dive into our passive Asset Management business. In 2023, XBT is showing a robust performance in the Nordic market with the rising number of active clients year-to-date, and in Sweden, more specifically, which is the only country where we can get granularity, XBT provided attracts an average of 3,500 new clients per month, creating a solid brand narrative and reflecting its strong resonance with the demographics. However, there has been a trend of redemption from professional investors on these very same product in the U.S. and the rest of Europe, which we are closely observing.

So once AUM is showing outflow, user data is showing more and more people coming to our products. CoinShares Digital Securities, or CSDS, saw significant growth in Europe with $40 million of net inflow year-to-date. CSDS expanded its offering for European professional investors, now presenting the best product in the market. Among this new offering is a production and the introduction of zero management fee stake index product, positioning CSDS as an attractive option for professional allocator looking at more than just a single coin exposure.

After introducing 2 new indices in Q1, Q2 was really focused on marketing and distribution for CoinShares Physical and XBT provider. We've included hosting dedicated events in Germany, Amberg, Munich; and Switzerland, Geneva and Zurich, educating investors on cryptocurrencies and exchange-traded products. Our comprehensive Digital Assets road show was launched across Italy, aiming to connect with institutional investors and brokerage platform.

Finally, a new website was launched dedicated to our ETP platform. We centralized all educational content for investors and edible monitoring and tracking of user activities, facilitating the measurement of campaign success.

Still on the passive side, let's take a look at the CoinShares Blockchain Global Equity Index, which sustained strong performance during the quarter, predominantly within the technology sector and specifically the Bitcoin mining subsector. This growth was driven by increased fee rewards and stronger market value for cryptocurrencies. However, hot money in terms of allocation shifted interest towards AI [indiscernible]. Consequently, the Invesco CoinShares Global Blockchain UCITS ETF experienced outflow amounting to $14 million. Despite these outflows, year-to-date, the floor remained positive, recording a net inflow of $8.6 million. Despite this thematic shift and interest shift, CoinShares retained market leadership in terms of year-to-date inflow and in terms of overall AUM on these products.

Overall, our passive asset management business confirms capacity to generate recurring revenue for the group.

With regards to our capital market activity, an important part of our profit comes from our CME future trading activities, providing an appealing risk-reward ratio. This strategy allows us to tap into potential returns while retaining the ability to operate at an institutional scale in a regulated or well-regulated market environment. The effectiveness of these strategies have been heightened by the introduction of new future contracts like Coinbase Bitcoin and Coinbase Ether future contracts. We also closely monitoring development for the CBOE in the U.S. and other initiatives in Asia, notably Singapore.

We continue to attract interest at favorable rates from our growing lending book and proactive treasury management bolstered by a resilient dollar yield. Despite the relative low volatility in Bitcoin and Ethereum price over the quarter, our proprietary trading strategies have effectively counterbalanced a decrease in liquidity provisioning income. Our strategies have been crucial in capitalizing on promising price appreciation while maximizing stability and consistent return. We persistently adapt to market condition to deliver the best results for our stakeholders.

All right. So time to conclude this review. So to sum up, we are on an exciting journey towards acceptance and participation from the mainstream financial sectors. When [indiscernible] start contributing each other, it's time to pay attention. This journey completely validates our initial strategic hypothesis and investments in our regulatory and compliance infrastructure.

As we enter these dynamic changes, my optimism for our future is unwavering. I'm confident that our foresight will not go unnoticed by the industry, our peers and our existing and new investors. Our strategic positioning and dedication to growth should start reflecting in the valuation of our stock as we gain further recognition.

This is closing CoinShares management, Q2 '23 remarks. Operator, you can now open the call for questions, please.

[Jeri-Lea Brown, executive]

So our first question comes from Nick Wakefield, Somerston. He asked AUM is currently up 50%, but Bitcoin and Ethereum are much more suggesting that you are losing market share. [indiscernible] new materials -- can you provide some color on the dynamics and how we should think about this?

[Richard Nash, executive]

Okay. I can take the first half of this question in respect to the AUM. So yes, you're right. The overall AUM of the group, when looking at the last 6 months, i.e., from the end of 2022 up to June 2023, is indeed up 50% from around about GBP 1.4 billion to about GBP 2.4 billion. And if you look at the back end of the report we released, there's some historical quarterly data that lays out. And what you will see from looking at that is obviously the 3 component parts to our asset management platform that drives AUM, XBT Provider, CoinShares Physical and the BLOCK index.

Now if you look at the increase in XBT Provider in CoinShares Physical, which obviously the ETP programs that issue product referencing digital assets, they've increased by about 75% and 80%, respectively, limiting the -- mimicking the price increases from the start of the year. It's the BLOCK index, which is actually referencing underlying [indiscernible] related equities that hasn't increased so much. So that's gone from around GBP 430 million to about GBP 490 million.

So when you take it all together, the overall AUM decreased by approximately 50%. And when looking at it in capacity of Bitcoin and Ethereum. And if we just look at the XBT Provider, CoinShares Physical AUM growth and they effectively mimic the price increases, we've seen since start of the year. So there hasn't been any loss of market share as you state.

The second half of the question in relation to TradFi [indiscernible] and new material threat. I'll hand over to Jean-Marie.

[Jean-Marie Mognetti, executive]

[indiscernible].

[Richard Nash, executive]

Correct.

[Jean-Marie Mognetti, executive]

Okay. So very much the question are about TradFi is the [ product ] is good. Obviously, the news is to see more big names coming in our direction. Is it causing a threat? I think the way to think about it is like the pricing point. We saw where all the TradFi [indiscernible] the more pricing. There is some existing participants [indiscernible] and CoinShares ultimately worried by that pricing angle.

The second potential [indiscernible] is distribution capacity. I will say that there is a couple of ways to look at that distribution capacity. First and foremost, people who are working for our competitors in TradFi, don't just sell crypto. They sell plenty of other stuff, and it is much easier today to sell a fixed income ETF for them to sell crypto ETC. So the sale distribution team, which is performance benchmark, will always sell what is easy and not what is difficult. So on that hand, we have a key comparative advantage.

I think the second advantage for us, and that's gone for the team we put together, it's like the team we put together is coming from ETF Securities. ETF Securities was the #1 in Europe player with regard to niche ETF or thematic ETF, which is exactly what it is right now, a thematic -- a crypto-specific ETF platform. And I think [indiscernible] right resources in terms of team, but also in terms of research and content to foster something, which is quite unique and offer our user service they won't get from any other ETF providers. So on that note, I think TradFi is good for the narrative, but it's also good for CoinShares to differentiate itself from the competition.

[Jeri-Lea Brown, executive]

Then we have a few questions from Milosz Papst from Edison Group. He is asking, do you experience any difficulties in your operations from the infrastructure gap left by the collapse of service providers such as Silvergate.

[Jean-Marie Mognetti, executive]

I can answer you this one. First of all, CoinShares was out of Silvergate way before it's collapsed. So we were kind of like already operating on the basis that service provider like Silvergate or Signature won't be able to keep operating in some condition or some form. So we have placed them effectively. Now it is true that the U.S. banking infrastructure and the non-U.S. banking infrastructure is suffering and is not as slick as it used to be.

However, the solutions in place, and we are learning the new environment, the nice nature without -- I told [indiscernible] we have to go back and leave in the 2015 market environment. Some of them remember very well that date. So we are lucky to get people with long enough experience in crypto to remember the old days, and we are back at it. The short term was painful, and we are back on track right now, in the moment, which is fully operational. So not for your concern.

[Jeri-Lea Brown, executive]

Thank you. The next question, how do you generate yield on your cash that is not invested in your capital market strategy? Is this an off trade or on trade?

[Richard Nash, executive]

I can take this one. So as you may well have seen, if you look kind of historically over our previous results, the level of cash at bank, cash and cash equivalents that we tend to hold is quite low. The reason why it is quite low is because all of our free cash flow is put into our capital market strategies to generate more yield for us than we would get elsewhere. So, obviously, this -- how this cash is deployed and the strategies that we are involved in changes over time, and we have to assess what's the best from a risk and reward standpoint, what's the best pathway to put our cash into the generation yields.

And I guess the question is arising, because the level of cash at bank or cash [indiscernible] is a little higher than normal at GBP 25 million. The reason for this is because we are holding some treasury bills as of the end of June for a fairly short duration, 3 to 6 months, and generating yield in that way. So while it's not being deployed into the capital market strategies as much as it's being converted to digital assets, it is still the cash out bank there. It still does form part of our wider capital market strategy. It just sort of happens that as [indiscernible] holding T-bills to generate yield by those means.

[Jeri-Lea Brown, executive]

Thank you very much. Next question for me, Nash is does the interest in active asset management strategies mostly come from family offices or also from larger institutions?

[Jean-Marie Mognetti, executive]

I'm going to do this on Richard?

[Richard Nash, executive]

Sure.

[Jean-Marie Mognetti, executive]

We didn't communicate specifically on that yet. So we don't use this call to communicate further on that format. We have some announcement to make first and some [indiscernible] to make first. However, from a pure stand-alone point of view and from experience of capital formation, you start with smaller allocator in terms of [indiscernible] and as you even more your allocator profile go as well. So it's kind of -- you're going to get large, large, large institutions they won, but they will come eventually over time. So it's a growing [indiscernible] starting point.

[Jeri-Lea Brown, executive]

Thank you very much. What could the implications of the recent ruling in the Ripple case have for the broader industry?

[Jean-Marie Mognetti, executive]

That's a question for [indiscernible]. It's not on this call, unfortunately. No. So with all jokes apart, I think there is a very good piece of research, which has been posted on our CoinShares website by [indiscernible]. So I invite you to read this research fees, which is written by a security lawyers. So it will be definitely better than my analysis, something a bit more recent regarding the Terra lab court case, [indiscernible] the judge refuse to use a report precedent to act on the Terra case, which means that what we were seeing a [indiscernible] article, which is to say that actually everybody was [indiscernible] big victory is not such a victory and should be taken a bit more carefully and court finding should be read a bit more carefully. So again, all the detail in clarity is reported online.

[Jeri-Lea Brown, executive]

Thank you very much. Now just a couple of questions from Kevin Dede from H.C. Wainright. He asks, noting the difference in professional investors and others, we're wondering if you can offer a mix on the Q2 2023 split institutional versus retail on ETP product sales versus the Q1 2023 or even Q2 2022?

[Jean-Marie Mognetti, executive]

Okay. Look, the narrative here is very simple. As we always said, our investor base is effectively [indiscernible] from Stockholm to Milan with a very strong concentration on the ETH. Now in terms of profile of these investors, they remain to the vast majority of retail investors. We have a growing number of institutional investors and the institutional quality signature or [indiscernible] quality is also increasing from medium kind of -- and also more institutional investors to just family office to much larger allocators. So it's a journey. We can see that growing, and we can see the demand hitting our [indiscernible] changing and, I would say, becoming much more qualified.

[Jeri-Lea Brown, executive]

Thank you very much. Next question. Why do you think there remains such strong interest in XBT provided in the Nordic region despite the management [indiscernible] Physical?

[Jean-Marie Mognetti, executive]

Richard, you want to take this one.

[Richard Nash, executive]

[indiscernible]

[Jean-Marie Mognetti, executive]

I think the way to think about XBT Provider is -- First of all, the interest in XBT Provider is -- there is two line on XBT Provider SEK [indiscernible] and [indiscernible] in Europe. Where we see the trend is really on the SEK line, which is the Swedish krona line, which is kind of one of the key in all the currency. I think XBT Provider in [indiscernible] is servicing the market, which likes a trend in the own currency, which allows them to avoid getting bad -- fixed rate.

What we have seen before, taking example in the U.K., we have some U.K. clients before the ban by the FCA, who used to buy the product on some UK platform they were filled on the mid-price on the MiFID regulation and then they were looking at the statement and the FX costs were astronomical.

So I think, for Nordic investor being able to transact in SEK is a very, very strong value-added for them, which makes an investment in CoinShares XBT Provider product interesting despite the expensive fees relative to the physical line, as you mentioned. So net-net, I think people [indiscernible] are realized in certain it's a good [indiscernible].

[Jeri-Lea Brown, executive]

Thank you very much. How has the change [indiscernible] among professional investors throughout Europe? And have you seen it influence the results versus Q1 2023?

[Jean-Marie Mognetti, executive]

I think MiCA has a lot of importance for institutional adoption in general. I don't think it's just my view, it's the view for the distribution team. I think resulting just on a quarter-to-quarter basis when you're dealing with institutional investors, who make several quarter to make a decision is a bit misleading. So if I look at effectively what we see in terms of qualifying to show demand versus people doing their diligence versus what we have seen before, MiCA [indiscernible] is served as a landline, where institutional investors are using that as, okay, once MiCA is there. We have no more SKUs more to be part of this journey, and that's kind of what we need to know that we can defend to our Risk Committee and our Investment Committee any investment in crypto.

So it is a very positive thing, which is happening in Europe. I know there is a discussion around, is it word in the right way? And is it not timing or anything? It is the first step. There will be a position of MiCA. But when it comes to institutional investors, you will [indiscernible] the necessary regulation to start positively.

[Jeri-Lea Brown, executive]

Thank you very much. With the capital markets activity generating circa GBP 10 million in the quarter, we're wondering if you're considering building that aspect of the business or whether you're content for the investment you have there?

When the dominant strategies in the quarter? And how do you see the business playing out in the flattish [indiscernible] pricing environment that we've seen so far this year?

[Jean-Marie Mognetti, executive]

Okay. That's one is for me. Sorry, Rich. I think, look, the strategy we outlined at the beginning of the year, and we share a lot of people. It's not so much to build capital market, but how we use knowhow we have in capital markets since 2017 now to go back to our root, which is active asset management. So if anything, what we're doing in capital market is we were trying to do innovative things and do stuff, which are think in an [indiscernible] way to whatever people will be doing traditionally in the market so that we can package into investment products.

So we don't really have plan to build that as a service or build as a specific business. We want to keep doing what we're doing and use it as a basis for active asset management platform.

[Jeri-Lea Brown, executive]

Okay. Okay. The next question is, what are your strategies telling you about the state of crypto pricing well heading into the halfway next year? And how has the team presented its marketing strategy to address this?

[Jean-Marie Mognetti, executive]

So I'm not going to front run the Bitcoin [indiscernible] coming out and the research periods are coming out specifically on this topic. Now we have been leading through a number of housing, and we know how the shock on the office side can have a strong impact on pricing, especially in an environment where the demand start to be increasing and can become institutional. So net-net, we know that [indiscernible] will be positive, and we believe that [indiscernible] will be positive for that.

How do we position ourselves and our marketing strategy to result? Well, our marketing team is fully built, and they work hand-in-hand with distribution team to be able to go to client and [indiscernible] fully aware of the narrative around the housing, how the housing is working and what's the impact in terms of shorthold offer and the best.

[Jeri-Lea Brown, executive]

Thank you very much. And finally, why do the marketing assets continue to support the XBT product suite?

[Jean-Marie Mognetti, executive]

Very good question. XBT Provider is our legacy product. It is still representing a serious amount of revenue of the group. So supporting it is not a bad idea. It's on the contrary what we should be doing. It has an extraordinary presence in Sweden. It's a very -- and in Nordics, it is a very well-known brand. So we need to keep projecting this asset and keep defending it. And if we can grow it to limit the amount of legacy outflow, we should definitely do it. On a side note, it's also a way for XBT Provider and CoinShares, which is not a company very much product in Sweden to also make the headlines about CoinShares. So it's a win-win for CoinShares and XBT Provider.

[Jeri-Lea Brown, executive]

Thank you very much. And with that, that wraps up list of questions. We'd like to thank everyone for joining us today and wish you all a great afternoon.