Major European cryptocurrency asset manager CoinShares will set up a hedge fund unit in the United States despite the strict regulatory environment for cryptocurrencies in the United States.
CoinShares officially announced the news on September 22, stating that the company would launch the product to qualified U.S. investors for the first time.
The new division, called CoinShares Hedge Fund Solutions, is the company’s response to growing demand for products based on cryptocurrencies such as Bitcoin (BTC).
CoinShares will make its products available to qualified U.S. investors for the first time through a range of private investment products.
Learn more about CoinShares hedge fund solutions here: https://t.co/pFVbP8IF3P
— CoinShares (@CoinSharesCo) September 22, 2023
Lewis Fellas, head of hedge fund solutions at CoinShares, said: “Cryptocurrencies’ journey to mass adoption has been fraught with fleeting promises and short-lived successes.” He noted that institutional cryptocurrency investor demands “come as the risk landscape evolves.” ever-changing.”
A new hedge fund unit will launch cryptocurrency investment products aimed at connecting traditional investors with the digital asset industry. The announcement did not specify specific crypto products, but mentioned a number of products that will soon be available in the United States, stating:
“By offering a diverse range of products covering a variety of beta and alpha strategies, as well as hybrids in between, CoinShares aims to meet the unique needs of each institution, facilitating the creation of comprehensive and optimized cryptocurrency investment portfolios.”
CoinShares Capital, a wholly owned subsidiary of CoinShares and a broker-dealer registered with FINRA, will market CoinShares Hedge Fund Solutions products to qualified U.S. investors.
related: Cryptocurrency fund outflows hit nearly $500 million in 9 weeks — CoinShares
Headquartered in Jersey, CoinShares is one of the largest cryptocurrency investment firms in the world, offering a wide range of cryptocurrency exchange-traded products. The company launched the first Bitcoin ETP back in 2015 and an Ethereum (ETH) ETP in 2017. CoinShares also operates an extensive research department focused on analyzing digital asset markets and regularly publishes weekly crypto fund flow reports.
CoinShares’ entry into the U.S. market comes amid an uncertain regulatory environment in the country.
Coinbase and Binance.US are currently facing lawsuits from the U.S. Securities and Exchange Commission for allegedly offering unregistered securities. Coinbase has been actively promoting global expansion in non-U.S. markets, including the European Union and the United Kingdom, amid domestic regulatory issues. Coinbase has also reportedly attempted to acquire FTX Europe to expand its overseas derivatives business.
CoinShares did not immediately respond to Cointelegraph’s request for comment.
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