European cryptocurrency investment firm CoinShares is optimistic about cryptocurrency regulation in the United States as the firm enters the new market.
On Sept. 22, CoinShares officially announced the launch of its new division, CoinShares Hedge Fund Solutions, marking the first time the firm introduce its offerings to qualified U.S. investors.
CoinShares’ entrance into the U.S. market comes at a time when many U.S. crypto firms are looking at expanding their businesses outside the country due to regulatory hurdles at home. One such firm, cryptocurrency exchange Coinbase, has been actively pushing expansion in Europe and the United Kingdom amid facing a lawsuit from the U.S. Securities and Exchange Commission over an alleged violation of securities laws.
Many crypto industry observers and participants have claimed that the U.S. government’s approach to crypto regulation has been making the country “less attractive” for crypto firms.
But unlike many U.S. crypto regulation critics, CoinShares believes that the U.S. is a global leader in terms of digital asset development, a spokesperson for CoinShares told Cointelegraph, stating:
“Contrary to the belief that the U.S. lags in crypto adoption and regulation, our perspective is shaped by the U.S. regulators’ approach to treating digital assets akin to traditional asset classes. This stance, we believe, will encourage and expedite the fusion of the two industries.”
CoinShares’ representative went on to say that the U.S. is home to 50% of globally managed assets and is a dominant financial market. “Our assertion on its leadership in the digital assets space is influenced by observable integrations between legacy and emerging financial players,” the spokesperson said, citing industry collaborations of BlackRock with Circle and Coinbase.
The expansion of CoinShares in the U.S. comes just a few months after CEO Jean-Marie Mognetti in July 2023 declared that Europe’s approach to crypto has been “even more problematic when compared to the financial might of U.S. institutions.”
“These financial behemoths — such as BlackRock and Fidelity, who each announced recently the filing of a spot Bitcoin ETF — are well-positioned to provide widespread crypto exposure,” Mognetti wrote in an op-ed a few months ago.
But while being specifically bullish about the crypto regulatory climate in the United States, CoinShares continues to be loyal to Europe. “CoinShares remains committed to Europe; our HFS is registered both in the U.S. and the United Kingdom,” the spokesperson for the firm told Cointelegraph, adding:
“Our perspective stems from the observation that in the US, there is a more apparent merging of traditional finance — TradFi — and crypto, which isn’t as pronounced in Europe where the two sectors aren’t as interconnected.”
One of the world’s largest crypto investment firms, CoinShares is a major provider of crypto exchange-traded products or ETPs. The firm debuted its first Bitcoin (BTC) exchange-traded product (ETP) in 2015. CoinShares is yet to disclose whether it plans to join the spot Bitcoin ETF race in the United States, though.
“We must adhere to strict regulations regarding the disclosure of forward-looking information. Therefore, we cannot provide specific details on CoinShares’ future product launches,” CoinShares representative stated. CoinShares has been registered with the SEC as an exempt reporting adviser, with CoinShares Limited acting as general partner for the private investment funds created by CoinShares Hedge Fund Solutions.