Renowned cryptocurrency asset management firm CoinShares has unveiled its expansion into the United States with the establishment of a cryptocurrency operation.
As per a press release dated September 22 on GlobeNewswire, CoinShares has introduced a new venture in the United States under the name “CoinShares Hedge Fund Solutions,” specifically tailored to serve cryptocurrency investors. This decision comes despite the challenging cryptocurrency environment in the North American region.
Qualified investors will have the opportunity to engage in a variety of private investment products, as CoinShares extends its market presence beyond the European cryptocurrency landscape.
To identify potential institutional investors within this specialized niche, the parent company, CoinShares Capital LLC, is set to embark on marketing endeavors.
This entity, registered with the Financial Industry Regulatory Authority (FINRA), will establish an expedited pathway for the strategies and products of this new business.
Leading this endeavor is Lewis Fallas, a seasoned professional with 23 years of experience in asset management, including seven years dedicated to the cryptocurrency sector.
In regards to the introduction of this new service, CoinShares CEO Jean-Marie Mognetti emphasized the importance of providing investors with well-managed access to digital assets, especially in light of the rising interest rates within financial markets.
In response to this, the product aims to deliver a seamless and comprehensive experience for its investors while expanding its portfolio management offerings.
Lewis Fallas also shared insights into the company’s rationale for launching this initiative. He pointed out that the expected return of interest rate-induced volatility creates an opportune moment to introduce new products tailored for the cryptocurrency market.
Furthermore, the cryptocurrency hedge fund service intends to offer a safeguard against counterparty risk, enabling investors to access well-mitigated investment categories with well-defined strategies in place.
It’s worth noting that CoinShares has not disclosed the specific cryptocurrencies available to investors through this initiative at this time.
Navigating Turbulent Waters in the United States
CoinShares, launched in 2008 and headquartered in Jersey, boasts registrations with the Jersey Financial Services Commission (JFSC) as both a financial services business (FSB) and an alternative investment fund service business (AIFSB).
The platform secured global acclaim with its groundbreaking introduction of Bitcoin exchange-traded products (ETPs) in 2015, followed by a similar offering for Ether two years later.
CoinShares’ recent foray into the US market aligns with an era of heightened regulatory scrutiny for cryptocurrency-related enterprises.
Major crypto industry players, including Coinbase and Binance.US, are embroiled in legal disputes with the US Securities and Exchange Commission (SEC) concerning their digital asset services.
Furthermore, Senator Elizabeth Warren, a vocal advocate against cryptocurrencies, has recently redoubled her efforts to enact more stringent regulations within the crypto sector.
In a coalition bill supported by over nine Democratic Party senators, Warren expounded on the imperative need for rigorous regulation of digital assets.
The Massachusetts senator emphasized that the revamped Digital Asset Anti-Money Laundering Act aims to close loopholes that facilitate the movement of funds by ransomware groups, rogue nations, and criminal entities.
