In a bold move, major European cryptocurrency asset manager CoinShares has unveiled its new hedge fund division, CoinShares Hedge Fund Solutions, targeting qualified investors in the United States. The announcement, made on September 22, comes despite the challenging regulatory landscape surrounding cryptocurrencies in the country.
CoinShares Hedge Fund Solutions aims to address the increasing demand for cryptocurrency-based products, such as Bitcoin, among institutional investors. Lewis Fellas, Head of CoinShares Hedge Fund Solutions, commented on the launch, saying,
“Crypto is full of fleeting promises and momentary successes along the pathway to mass adoption.”
He added that the requirements of institutional cryptocurrency investors are constantly evolving in response to the changing risk landscape.
According to a CoinShares spokesperson, the new hedge fund division commenced operations in August 2023. The team, led by Lewis Fellas, has been diligently developing strategies and refining the platform since January.
The division will offer a range of crypto investment products, bridging the gap between traditional investors and the digital asset industry. While specific crypto products were not detailed in the announcement, it mentioned a broad spectrum of offerings coming to the United States.
“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 United States Financial Industry Regulatory Authority (FINRA), will be responsible for marketing CoinShares Hedge Fund Solutions’ products to qualified U.S. investors. The spokesperson also noted that CoinShares (Jersey) Limited has been registered with the Securities and Exchange Commission (SEC) as an exempt reporting adviser.
Headquartered in Jersey, CoinShares stands as one of the world’s largest crypto investment firms, known for its wide array of crypto exchange-traded products. The company made its mark in 2015 with the debut of its first Bitcoin exchange-traded product (ETP) and further expanded its offerings with the launch of an Ether (ETH) ETP in 2017. CoinShares also operates a robust research division, focused on analyzing the digital asset market and regularly issuing weekly crypto fund flow reports.
CoinShares’ foray into the U.S. market occurs amidst a regulatory environment fraught with uncertainty. Notably, major crypto exchanges like Coinbase and Binance.US have been entangled in legal disputes with the U.S. Securities and Exchange Commission (SEC) over alleged unregistered securities offerings. To navigate these challenges, Coinbase has pursued global expansion into non-U.S. markets, including the European Union and the United Kingdom, indicating the cryptocurrency industry’s dynamic response to regulatory pressures.
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