Cryptocurrency asset manager CoinShares is establishing a hedge fund division in the United States. The U.S. FINRA will conduct marketing activities for the new hedge fund division.
CoinShares officially announced the news on September 22, stating that the company will make its offerings available to qualified U.S. investors for the first time.
The CoinShares Hedge Fund Solutions division is the company’s response to the increasing demand for products based on cryptocurrencies such as Bitcoin.
The president of CoinShares Hedge Fund Solutions, Lewis Fellas, stated, “Crypto is full of ephemeral promises and momentary triumphs on the path to mass adoption.” The requirements of institutional cryptocurrency investors are “constantly evolving with the changing risk landscape,” he remarked.
The new hedge fund division’s crypto investment products aim to connect institutional investors with the digital asset industry. Without naming specific crypto products, the announcement stated:
“By offering a diverse range of products, across the spectrum of beta and alpha strategies with hybrids in between, CoinShares aims to cater to the unique needs of each institution, facilitating the creation of a well-rounded and optimised crypto portfolio.”
CoinShares Capital, a wholly-owned subsidiary of CoinShares and a broker-dealer registered with the Financial Industry Regulatory Authority of the United States, will market CoinShares Hedge Fund Solutions’ products to qualified U.S. investors.
CoinShares, with headquarters in Jersey, is one of the world’s largest crypto investment firms, offering a vast array of crypto exchange-traded products. The company introduced its first Bitcoin ETP in 2015 and an Ether ETP in 2017.
CoinShares maintains an extensive research division that analyzes the digital asset market and publishes weekly reports on crypto fund flows.
The entrance of CoinShares into the U.S. market coincides with an ambiguous regulatory climate in the country.
Binance and Coinbase.US are facing lawsuits from the U.S. Securities and Exchange Commission for allegedly offering unregistered securities.
Despite domestic regulatory issues, Coinbase has actively pursued global expansion in non-U.S. markets, including the European Union and the United Kingdom.
According to some reports, Coinbase also attempted to acquire FTX Europe to expand its international derivatives business.
