CoinShares Set to Launch Crypto Hedge Fund in US Amid Regulatory Challenges
Summary:
Despite facing a tough regulatory climate for cryptocurrencies in the U.S., leading European crypto asset manager CoinShares has announced plans to launch a hedge fund division in the country. Named CoinShares Hedge Fund Solutions, the division is aimed at meeting the demand for products based on Bitcoin and other cryptocurrencies. The firm, which initially introduced its Bitcoin ETP in 2015 and Ethereum ETP in 2017, will make a range of private investment products available to qualified U.S. investors for the first time. The move comes amidst legal issues faced by crypto firms like Coinbase and Binance.US, illustrating CoinShares' commitment to overseas expansion.
Despite the challenging regulatory landscape for cryptocurrencies in the United States, leading European crypto asset manager, CoinShares, is gearing up to establish a hedge fund division on American soil. The firm unveiled its plans formally on 22nd September, affirming its commitment to provide qualified U.S. investors with access to its product portfolio for the very first time. CoinShares Hedge Fund Solutions, the recently conceived division, is a testament to the surge in demand for Bitcoin and other crypto-based products.
For the first time, an assortment of private investment products from CoinShares will be available to eligible investors in the United States. CoinShares Hedge Fund Solutions chief, Lewis Fellas, spoke about the ephemeral triumphs and assurances in the crypto world on its journey to widespread acceptability. He further acknowledged the shifting landscape of risk and the dynamic requirements of institutional cryptocurrency investors.
The novel hedge fund division is set to offer crypto investment products designed to bridge traditional investors with the digital asset industry. Without any clear detail on the exact nature of these investment products, the firm declared a host of them would soon be available in the US market. CoinShares aims to provide a myriad of beta and alpha strategies, including an array of hybrid options, to cater to the specific requirements of each institution and assist in the formation of a balanced and efficient crypto portfolio.
CoinShares Capital, CoinShares' total subsidiary that is registered with the Financial Industry Regulatory Authority (FINRA) in the USA, is prepped to lead the marketing drive for the products of CoinShares Hedge Fund Solutions to qualified American investors.
CoinShares, based in Jersey, is among the most prominent players in the global crypto investment ecosystem, boasting a suite of crypto exchange-traded products (ETPs). The firm first introduced its Bitcoin ETP in 2015 and subsequently launched its Ether (ETH) ETP in 2017. Additionally, the firm operates a significant research division that consistently publishes weekly reports on crypto fund flows while conducting in-depth market analysis of digital assets.
CoinShares' move to enter the U.S. market occurs amidst an uncertain regulatory environment in the country. The U.S. Securities and Exchange Commission has legal actions pending against Coinbase and Binance.US for their alleged offerings of unregistered securities. Despite facing legal challenges within its home market, Coinbase has expressed keen interest in its global expansion, targeting regions outside the U.S., including the EU and the UK. Reports also suggest that Coinbase sought to purchase FTX Europe in a bid to augment its overseas derivatives business.
CoinShares refrained from commenting immediately when reached out to by Cointelegraph.
Published At
9/22/2023 1:10:53 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.