European crypto asset manager CoinShares expands to U.S. with new hedge fund division
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(Kitco News) - Tighter regulations in the U.S. are a market opportunity for CoinShares.
As the crypto crackdown in the U.S. intensifies, which has some companies mulling a move overseas to more welcoming jurisdictions, European alternative asset manager CoinShares has announced the launch of its hedge fund division, CoinShares Hedge Fund Solutions, which will make its digital asset offerings available to qualified U.S. investors.
“For the first time, CoinShares will be making its offerings accessible to qualified U.S. investors through a range of private investment products, marking CoinShares' expansion beyond its established European base,” the press release said. “CoinShares is committed to becoming the premier destination for institutions in the digital assets realm.”
The firm is looking to offer U.S. investors access to “a diverse range of products, across the spectrum of beta and alpha strategies with hybrids in between,” that will allow them to “cater to the unique needs of each institution, facilitating the creation of a well-rounded and optimized crypto portfolio,” CoinShares said.
The new platform will provide institutional clients with all the tools and resources needed to engage the complicated world of digital assets with greater ease, removing one of the biggest barriers to entry into cryptocurrencies.
“CoinShares Capital LLC, a wholly-owned subsidiary of CoinShares and a broker-dealer registered with the Financial Industry Regulatory Authority (FINRA), will be conducting marketing activities to qualified investors in the United States in support of CoinShares Hedge Fund Solutions' strategies and products,” they said.
With extensive experience in the field of digital assets and licenses to operate in key markets, CoinShares has the capacity to offer premium products that meet the due diligence requirements of institutional investors equal to that of more traditional offerings by established financial institutions.
“The design of our strategies reflects the team's deep and practical knowledge of digital assets and showcases the firm's ability to develop new products that meet the demands of institutional investors,” said Lewis Fellas, head of hedge fund solutions at CoinShares. “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 that will be offered is designed to mitigate counterparty risk whilst providing investors with clearly defined asset class and strategy exposures."
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CoinShares is best known for its crypto ETPs, research, and venture arms. They currently offer a wide range of crypto products, including single-asset ETPs for Bitcoin, Ethereum, Litecoin, XRP, Polkadot, Tezos, and Solana. They also have multi-asset products, such as the CoinShares Physical Top 10 Crypto Market ETP and the CoinShares Physical Smart Contract Platform ETP, which track the performance of a basket of cryptocurrencies.
CoinShares also offers a number of staked ETPs, which provide investors with exposure to the underlying cryptocurrency as well as the staking rewards.
The firm's crypto ETPs can be bought just like stocks, bonds, or ETFs, through participating investment platforms in Europe – including the London Stock Exchange, the SIX Swiss Exchange, and the Nasdaq First North Growth Market – and this latest expansion will make their products available to institutional investors in the U.S.
“In a changing macro environment prominently marked by interest rates and inflation, the demand for actively managed exposure to digital assets is a natural progression,” said Jean-Marie Mognetti, CEO of CoinShares. “Backed by a decade-long legacy in the digital asset industry and a team with more than two decades in hedge funds, the new division signifies the latest step in CoinShares' evolution. Our products focus on delivering a premium experience to our investors and we are delighted to enrich our long-only asset management offerings by returning to our core founding program.”