CoinShares is making its first asset management pitch to US investors
The European cryptocurrency ETP leader, CoinShares, has lofty goals for its actively managed products.
The European crypto ETP expert CoinShares is expanding into actively managed digital asset products for the first time, with a focus on the US institutional market.
The Jersey-based firm’s stock market success may be traced back to the company’s ability to issue liquid ETPs that cover a wide variety of spot cryptocurrencies. In addition, the firm is well-known in its field for its insightful studies. The company has a venture capital division that takes money from outside sources, including those in the United States.
However, according to a filing with the SEC made on Wednesday, CoinsShares looks to be readying the launch of its first hedge fund available to authorised US investors. The company’s ETP products and other assets under management as of the most recent European closure were close to $3 billion.
The vehicle is structured as a feeder fund, indicating that limited partner funds will be invested in a master fund. This, in turn, might act as a channel for funds to come in from investors in Europe. When asked for comment, CoinShares’s spokesman refused.
Although venture capital and private equity raises have regained from their lows in the fourth quarter of 2022, this shift comes as industry players believe launches of institutional-grade, liquid vehicles focusing on cryptocurrency have halted.
There has been a halt in the development ambitions of several conventional financial institutions that dabbled with bitcoin trading in 2022. Due to the regulatory hurdles presented by the SEC and CFTC in the United States, many have taken a wait-and-see stance.
The decision was made after CoinShares had a rough finish to 2022, with a 29% decline in total income during the fourth quarter, among other things. Exposure to FTX was high for the firm.