CoinShares, a prominent European cryptocurrency asset manager, has ventured into the American market by launching CoinShares Hedge Fund Solutions, catering to qualified U.S. investors. With over $2.5 billion in assets under management, CoinShares is recognised for its virtual-currency exchange-traded products.
This move comes as CoinShares aims to tap into the U.S. market, which is showing increasing interest in cryptocurrencies due to factors like monetary policy, volatility, and macroeconomic uncertainty. The company’s CEO, Jean-Marie Mognetti, emphasised the attractiveness of delivering outperformance when interest rates are higher.
The firm’s proprietary trading division, which uses its capital instead of client funds, will be integrated into the Hedge Fund Solutions division.
CoinShares had previously filed plans with the U.S. Securities and Exchange Commission (SEC) to launch two new feeder funds focused on Bitcoin and Ether. These filings classified the products as hedge funds, but the specific strategies the new division will employ remain undisclosed.
The company’s CEO also mentioned that recent data indicated a growing trend of Bitcoin holders choosing to hold onto their assets as a store of long-term value rather than as a trading asset.
CoinShares’ expansion into the U.S. market is a notable move, considering the regulatory challenges faced by cryptocurrency firms in the country. Some other companies have abandoned their plans in the U.S. due to regulatory uncertainties and legal issues. Bittrex, for example, announced the closure of its U.S. operations in March, citing regulatory uncertainty, while the SEC sued Coinbase and Binance in June for allegedly operating as unregistered securities exchanges.
The move into the U.S. market allows CoinShares to offer its hedge fund products to American investors for the first time. These products include funds based on Bitcoin and Ethereum, aiming to provide investors with actively managed exposure to digital assets. The company did not provide further details about its plans in the U.S., but the expansion comes at a time when institutional interest in cryptocurrencies is on the rise.
CoinShares’ Hedge Fund Solutions division, led by Lewis Fellas, is poised to meet the evolving demands of institutional investors in the crypto space. The division aims to capture opportunities arising from interest rate-driven volatility in the market while mitigating counterparty risk and providing clear asset class and strategy exposures.