April 19, 2024
CoinShares defies U.S. regulatory hurdles
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CoinShares Defies Regulatory Hurdles, Launches Hedge Fund Division in U.S.

Major European cryptocurrency asset manager CoinShares is defying the challenging regulatory landscape for cryptocurrencies in the United States by introducing a hedge fund division in the country.CoinShares made the official announcement on September 22, revealing that it will be unveiling its offerings for qualified U.S. investors for the first time.
This new venture, named CoinShares Hedge Fund Solutions, is CoinShares’ response to the increasing demand for cryptocurrency-based products, such as Bitcoin, among investors. CoinShares Hedge Fund Solutions head Lewis Fellas commented that crypto is full of fleeting promises and momentary successes along the pathway to mass adoption. He also noted that the requirements of institutional cryptocurrency investors are continually evolving due to the changing risk landscape.
The newly established hedge fund division will feature cryptocurrency investment products designed to bridge the gap between traditional investors and the digital asset industry. While the announcement did not specify the exact cryptocurrency products, it mentioned a wide range of offerings coming to the United States, with a focus on catering to the unique needs of each institution by providing a diverse array of products, spanning beta and alpha strategies with hybrid options in between.CoinShares Capital, a fully-owned subsidiary of CoinShares registered as a broker-dealer with the United States Financial Industry Regulatory Authority, will be responsible for marketing CoinShares Hedge Fund Solutions’ products to qualified U.S. investors.
A spokesperson for CoinShares also noted that CoinShares (Jersey) Limited has been registered with the Securities and Exchange Commission as an exempt reporting adviser.Headquartered in Jersey, CoinShares ranks among the world’s largest cryptocurrency investment firms and offers a wide range of cryptocurrency exchange-traded products. The company introduced its first Bitcoin exchange-traded product (ETP) in 2015 and launched an Ether ETP in 2017. CoinShares also maintains an extensive research division that focuses on analyzing the digital asset market and regularly publishes weekly crypto fund flow reports.CoinShares’ decision to enter the U.S. market comes at a time when the regulatory environment for cryptocurrencies in the country remains uncertain.
Both Coinbase and Binance.US are currently embroiled in lawsuits brought forth by the U.S. Securities and Exchange Commission, alleging the offering of unregistered securities. In response to these regulatory challenges, Coinbase has actively pursued global expansion in non-U.S. markets, including the European Union and the United Kingdom. Some reports even suggest that Coinbase has explored the acquisition of FTX Europe as part of its efforts to expand its overseas derivatives business.

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