In a food processor, process the shredded coconut until a paste starts to form. This will take about 10 minutes, so be patient. Stop and scrape down the sides of the processor bowl as needed.
Once a paste forms, add the peanuts and continue to process until smooth and silky.
Add the agave and salt and process to combine. The butter can be stored in a mason jar in the fridge for about 4 months. It will thicken once refrigerated.