Crypto asset manager CoinShares, operating in Europe, will launch a hedge fund division in the United States despite the challenging crypto regulatory practices in the region. CoinShares announced this development on its official website on September 22, highlighting that it will be serving US investors for the first time in the company’s history. CoinShares’ move comes at a time when the crypto market in the US is under regulatory pressure, and this situation is noteworthy.
The company’s new subsidiary aims to respond to the increasing demand for products based on crypto assets, particularly in the United States. According to the company’s statement, the name of the new subsidiary was announced as CoinShares Hedge Fund Solutions. Lewis Fellas, the President of CoinShares Hedge Fund Solutions, stated the following:
“Crypto is filled with temporary promises and instant successes on the path to mass adoption.”
He also added that the needs of institutional crypto investors are constantly evolving with the changing risk environment. With the new subsidiary focusing on hedge funding, the company aims to introduce crypto asset investment products that connect traditional investors with the crypto asset industry. While the services to be provided were not mentioned in the announcement, numerous products were mentioned with a focus on the United States:
“CoinShares aims to facilitate the creation of a versatile and optimized crypto portfolio by offering a wide range of products, including hybrids, in its beta and alpha strategies, meeting the unique needs of every institution.”
CoinShares’ subsidiary, CoinShares Capital, a registered financial company with the United States Financial Industry Regulatory Authority, will provide marketing activities for CoinShares Hedge Fund Solutions’ services to qualified US investors.
CoinShares, one of the world’s largest crypto investment firms offering products traded on numerous crypto exchanges, is headquartered in Jersey. The company launched its first Bitcoin ETP in 2015. In 2017, it attracted attention by launching an Ethereum ETP. The company also started serving as a data analysis platform and operates a comprehensive research department focused on publishing weekly crypto fund flow reports. CoinShares’ latest move comes amid a legal environment for the crypto market in the country.
Both Binance and Coinbase are currently facing lawsuits filed by the SEC in the US. The allegation in question is the offering of unregistered securities trading. Coinbase is currently focusing on expanding in markets outside the US, including Europe and the United Kingdom, to find a different solution to this situation. There are even some allegations that Coinbase attempted to acquire FTX Europe to enhance its overseas operations.