November 18^th, 2022

CoinShares Digital Securities Limited

LEI: 549300DR7967WVLR3P83

CoinShares FTX Physical FTX Token

Compulsory Redemption of CoinShares FTX Physical FTX Token

Suspension of Redemptions in respect of CoinShares FTX Physical FTX Token

CoinShares Digital Securities Limited (the "Issuer") gives notice pursuant to Condition 8.1 of the Conditions that all CoinShares FTX Physical FTX Token Digital Securities are to be redeemed compulsorily and that the Issuer has nominated December 19^th, 2022 (the "Physical FTX Redemption Date") to be the Compulsory Redemption Date in respect of the CoinShares FTX Physical FTX Token Digital Securities.  In accordance with Condition 8.1(b), such Redemption will be effected by Cash Settlement in accordance with Condition 8.8 (Payment of Cash on Compulsory Redemption) unless the Security Holder in respect of such Digital Security has, no later than ten (10) Issuer Business Days prior to the Physical FTX Redemption Date, delivered to the Issuer a valid Redemption Notice specifying Physical Delivery and effected an Acceptable Delivery in respect of the Digital Securities to be Redeemed.  Settlement in respect of such CoinShares FTX Physical FTX Token Digital Securities on Redemption will be effected as soon after the Physical FTX Redemption Date as reasonably practicable and in any event is expected to be settled by the fifteenth (15) Business Day after the Physical FTX Redemption Date.

The Issuer further gives notice pursuant to Condition 7.13 that, the Determination Agent having determined that the prevailing market value of the Coin Entitlement of each CoinShares FTX Physical FTX Token Digital Security is less than its Principal Amount (US$0.54), has suspended the right to Redeem the CoinShares FTX Physical FTX Token Digital Securities pursuant to Conditions 7.2 (Redemption by Authorised Participants), 7.3 (Redemption by other Security Holders) (if applicable) and 7.4 (Redemption by other Security Holders seeking Physical Delivery) with effect from close of business on the date of this notice.  Such suspension does not affect any Redemption pursuant to a Redemption Notice, received (or deemed to have been received) on a date prior to close of business on the date of this notice, but any Redemption Notice in respect of CoinShares FTX Physical FTX Token Digital Securities submitted or deemed to be received on or after the date of this notice will be invalid.

Settlement of cash redemption proceeds due to Security Holders holding their CoinShares FTX Physical FTX Token Digital Securities in uncertificated form is expected to be made via CREST.

In the case of Security Holders holding their CoinShares FTX Physical FTX Token Digital Securities in certificated form, it is expected that payment will be made by way of a US dollar cheque sent to them at their address on the register.

Terms used in this announcement and not otherwise defined bear the same meanings as where used in the base prospectus of the Issuer dated April 20^th, 2022.

For further information, please contact:

CoinShares Digital Securities Limited

2 Hill Street

St. Helier, Jersey,

JE24UA

Channel Islands

ir@coinshares.com

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