Prominent cryptocurrency asset manager, CoinShares, has unveiled its intentions to inaugurate a cryptocurrency venture in the United States.
A press release disseminated on GlobeNewswire on September 22 reveals that this new American arm will operate under the moniker CoinShares Hedge Fund Solutions. Exclusively tailored for cryptocurrency enthusiasts, the move is bold given the current stringent crypto regulatory environment in the US.
Qualified investors are provided an avenue to engage with a plethora of private investment offerings as CoinShares broadens its operational horizons beyond the confines of the European crypto sphere.
In an effort to pinpoint institutional investors within this specialized domain, the overarching entity, CoinShares Capital LLC, will spearhead promotional endeavors.
The firm, which is duly registered with the Financial Industry Regulatory Authority (FINRA), is poised to streamline the roll-out strategies and product offerings for the nascent enterprise.
At the helm of this ambitious venture is Lewis Fallas. With an impressive career spanning 23 years in asset management and a notable 7-year stint within the crypto arena, Fallas is well-poised to guide the company’s US endeavors.
CoinShares CEO, Jean-Marie Mognetti, commented on the recent unveiling of the new service. He highlighted that the escalating interest rates in the financial sectors necessitate investors’ structured and adeptly managed entry into digital assets.
With this backdrop, the product is meticulously crafted to deliver a comprehensive and frictionless experience for its clientele while also diversifying its array of management solutions.
Fallas further elaborated on the impetus behind the company’s move. He pinpointed the anticipated resurgence of volatility driven by interest rates as the opportune moment to debut offerings tailored for the crypto domain.
Furthermore, the crypto hedge fund service is designed as a counterbalance, offering investors a channel to venture into well-structured investment categories that are adeptly navigated with the right strategies.
However, CoinShares has kept the specific details of the crypto assets available through this endeavor under wraps.
Stormy Seas in the US
Established in 2008 and headquartered in Jersey, CoinShares is duly registered with the Jersey Financial Services Commission (JFSC). It operates both as a financial services business (FSB) and an alternative investment fund service business (AIFSB).
The platform catapulted to international acclaim following the launch of its trailblazing Bitcoin exchange-traded products (ETPs) in 2015. This innovative streak continued when it rolled out a similar offering for Ether in 2017.
Its foray into the American market comes at a time when crypto-centric businesses are under intense regulatory scrutiny.
Major players in the crypto sphere, such as Coinbase and Binance.US, are currently grappling with legal challenges posed by the US Securities and Exchange Commission (SEC) concerning their digital asset services.
Additionally, Senator Elizabeth Warren, a notable critic of the cryptocurrency sector, has redoubled her efforts to push for more rigid regulations in the industry.
Supported by a collective bill endorsed by over nine senators from the Democratic Party, Warren underscored the urgency to tighten the regulatory reins on digital assets.
Representing Massachusetts, she elaborated that the revised Digital Asset Anti-Money Laundering Act aims to close gaps that presently allow ransomware attackers, rogue states, and illicit actors to transfer and launder money with relative ease.
