Key 1Q24 takeaways include: 1) stepped up earnings power following recent deleveraging that cuts interest expense and unlocks higher-yielding AUM 2) sustainable demand for Valour's ETPs despite near-term crypto volatility and 3) ongoing product development focused on innovative and differentiated offerings that facilitate access and exposure to digital assets via secure, liquid, and yield-bearing vehicles. We are raising our 2024 and 2025 EPS estimates from $0.08/$0.40 to $0.12/$0.51 reflecting higher trading/staking fees, as DEFTF's revenue model continues to evolve, combined with lower interest expense. Stepping back, we believe DEFTF remains well positioned for accelerating growth driven by the firm's diversified digital assets platform, rising demand for crypto ETPs more broadly, ongoing product development, durable regulatory competitive advantages, and an increasingly potent earnings profile.
