Major European cryptocurrency asset manager CoinShares is launching a hedge fund division in the United States despite the country’s tough crypto regulation climate.
CoinShares officially announced the news on Sept. 22, stating that the firm will roll out its offerings for qualified U.S. investors for the first time ever.
The new division, called CoinShares Hedge Fund Solutions, is the company’s response to the growing demand for products based on cryptocurrencies like Bitcoin (BTC).
For the first time, CoinShares will be making its offerings accessible to qualified U.S. investors through a range of private investment products.— CoinShares (@CoinSharesCo) September 22, 2023
Learn more about CoinShares Hedge Fund Solutions here: https://t.co/pFVbP8IF3P
“Crypto is full of fleeting promises and momentary successes along the pathway to mass adoption,” CoinShares Hedge Fund Solutions head Lewis Fellas said. The requirements of institutional cryptocurrency investors are “constantly evolving with the changing risk landscape,” he noted.
A spokesperson for CoinShares told Cointelegraph that the new hedge fund commenced operations in August 2023. "Since January, Lewis and the team have been developing the strategies and refining the platform," the representative noted.
The new hedge fund division features crypto investment products aiming to connect traditional investors and the digital asset industry. Without specifying the exact crypto products, the announcement mentioned a wide number of its products coming to the United States, stating:
“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 fully-owned subsidiary of CoinShares and a broker-dealer registered with the United States Financial Industry Regulatory Authority, will be conducting marketing activities to qualified U.S. investors for CoinShares Hedge Fund Solutions’ products. "CoinShares (Jersey) Limited has been registered with the Securities and Exchange Commission as an exempt reporting adviser," a spokesperson for CoinShares also wrote in a statement.
Headquartered in Jersey, CoinShares is one of the world’s largest crypto investment firms, offering a large number of crypto exchange-traded products. The firm debuted its first Bitcoin exchange-traded product (ETP) in 2015, launching an Ether (ETH) ETP in 2017. CoinShares also operates an extensive research division that is focused on analyzing the digital asset market and regularly issuing weekly crypto fund flow reports.
CoinShares’ entrance 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. Amid the regulatory issues at home, Coinbase has been actively pushing global expansion in non-U.S. markets, including the European Union and the United Kingdom. According to some reports, Coinbase has also tried to acquire FTX Europe as it looked to expand its overseas derivatives business.
CoinShares didn’t immediately respond to Cointelegraph’s request to comment.