European digital asset investment firm CoinShares has acquired an additional 20.8% stake in Swiss firm FlowBank.

CoinShares will pay $26.5m (CHF 24.74m) for the deal, which has been approved by the Swiss Financial Market Supervisory Authority.

The firm first acquired a 9.02% interest in FlowBank in October 2021 as part of strategic investment.

With the latest deal, CoinShares now owns 29.3% of FlowBank, with voting rights equal to 32.06%.

The investment is part of the firm’s strategy to expand its presence as the investor market witnesses increasing demand advanced digital asset exposure.

CoinShares CEO Jean-Marie Mognetti said: “After remarkable financial results in 2021, we continue to build an ambitious plan to make CoinShares an essential and leading player in the digital asset space.

“We are very excited to increase our participation in FlowBank, a key innovative player in Switzerland powered by a unique technology, and allow them to leverage our technology and digital asset expertise. This is aligned with our strategic plan to make CoinShares an integrated digital asset fintech company.”

As part of the deal, Mognetti will join FlowBank’s board of directors and advise on digital asset strategy and global development.

FlowBank CEO Charles Henri Sabet said: “We are delighted that CoinShares continues to recognise and support FlowBank’s great potential and accomplishments and has decided to increase its stake in our bank.

“Today, FlowBank’s clients can invest in CoinShares’ crypto on CFDs and gain exposure to digital currencies in this way. This is only the beginning. We look forward to collaborating further with CoinShares in the coming months and taking our product offering to the next level, together.”

In July last year, CoinShares bought Elwood Technologies’ ETF index business to expand its footprint into the equities market.