CoinShares Opens Hedge Fund Targeting Expansion Outside Europe

TL;DR

• A primary crypto asset manager, Coinshares is launching a hedge fund division for qualified U.S. investors, marking expansion outside its European base.
• The hedge fund service offers counterparty risk for institutional investors to access well-managed investment classes with proper strategies.

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Cryptocurrency Asset Manager Launches CoinShare Hedge Fund Solutions

Coinshares, the largest European cryptocurrency asset manager, is establishing a hedge fund division for U.S. investors, expanding outside its European base.

The St. Helier, Jersey-based company seeks to offer actively managed exposure to digital assets to institutional investors.

🔴Exciting news from CoinShares!

We are launching the CoinShares Hedge Fund Solutions division, led by Lewis Fellas, as part of our mission to continue bridging the gap between traditional institutional investors and the dynamic world of digital assets.https://t.co/pFVbP8IF3P pic.twitter.com/icTmNtBcNp

— CoinShares (@CoinSharesCo) September 22, 2023

At the service rollout, Jean-Marie Mognetti describes the move as having a natural progression.

In light of the changing macro environmental dynamics prominently affected by interest rates and inflation, he concedes that it’s increasingly vital for investors to access properly mitigated digital assets.

The long-awaited return of interest rate-driven volatility is a great opportunity that we plan to capture with our novel fund products. Each product offered is designed to mitigate counterparty risk whilst providing investors with clearly defined asset class and strategy exposures.

Lewis Fellas, CoinShares’ hedge fund head, said.

The new hedge division, CoinShare Hedge Fund Solutions, will respond to the growing demand for products based on cryptos. 

The products will focus on offering a seamless and holistic experience.

Despite the hostile crypto market, it will only cater to cryptocurrency investors around North American countries.

Division to Connect Traditional Investors and the Digital Asset Industry

The new hedge fund seeks to connect traditional investors to the digital asset industry.

Its parent company, CoinShares Capital LLC, will conduct marketing activities in the U.S. to identify potential investors in this niche.

Qualified investors can trade across a wide range of private investment products coming to the United States. 

Lewis acknowledges that by offering a diverse range of products on various spectrums of beta and alpha strategies, the crypto asset manager seeks to cater to the unique needs of each institution.

This approach will pave the way for creating a well-rounded and optimized crypto portfolio.

Subsequently, the firm, registered with the Financial Industry Regulatory Authority (FINRA), will offer a fast-track lane for new business strategies and products.

CoinShares: A Versatile Crypto Asset Management Platform

Renowned for providing virtual currency exchange-traded products, CoinShares currently oversees more than $2.5 billion in asset management.

Subsequently, it has registered with the Jersey Financial Services Commission (JFSC) both as a financial service business (FSB) and as an alternative fund service business (AIFSB).

The crypto asset manager became famous for introducing its pioneering BTC exchange-traded products (ETPs) in 2015. Afterwards, the platform launched a similar product for Ether.

Following its recent entry into the United States market, it’s evident that this move closely aligns with the stringent regulatory scrutiny facing all cryptocurrency-related institutions.

Coinbase and Binance.US are in a legal battle with the US SEC concerning digital asset services.

Far from that, Senator Elizabeth Warren, an anti-crypto spokesperson, desires to impose stricter regulations on the cryptocurrency space in a coalition bill.

Will CoinShares’ bid to actively push for global expansion in U.S. markets come to fruition? 

It remains to be seen. CoinShares is, however, confident it would succeed in its venture.

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