European cryptocurrency investment firm CoinShares has expressed optimism about cryptocurrency regulation in the United States as the firm enters the new market. CoinShares recently announced the launch of its new division, CoinShares Hedge Fund Solutions, marking its first offering to qualified US investors.
CoinShares’ entrance into the US market comes at a time when many US crypto firms are considering expanding their businesses outside the country due to regulatory obstacles at home. For instance, cryptocurrency exchange Coinbase has been actively pursuing expansion in Europe and the United Kingdom while facing a lawsuit from the US Securities and Exchange Commission over an alleged violation of securities laws. Critics of US crypto regulation have argued that the government’s approach is making the country “less attractive” for crypto firms.
However, CoinShares has a different perspective. The firm believes that the US is a global leader in terms of digital asset development. A spokesperson for CoinShares stated that the US regulators’ approach to treating digital assets akin to traditional asset classes will encourage and expedite the fusion of the two industries. The spokesperson also pointed out that the US is home to 50% of globally managed assets and is a dominant financial market. CoinShares believes that the US’s leadership in the digital assets space is evident from industry collaborations, such as BlackRock’s partnerships with Circle and Coinbase.
CoinShares’ expansion in the US follows CEO Jean-Marie Mognetti’s declaration in July 2023 that Europe’s approach to crypto has been “even more problematic when compared to the financial might of US institutions.” Mognetti highlighted that US financial behemoths like BlackRock and Fidelity, who recently announced the filing of a spot Bitcoin ETF, are well-positioned to provide widespread crypto exposure.
While CoinShares is bullish about the crypto regulatory climate in the United States, the firm remains committed to Europe. CoinShares believes that there is a more apparent merging of traditional finance (TradFi) and crypto in the US, which is not as pronounced in Europe where the two sectors aren’t as interconnected.
CoinShares is one of the world’s largest crypto investment firms and a major provider of crypto exchange-traded products (ETPs). The firm launched its first Bitcoin (BTC) ETP in 2015. Although CoinShares has not disclosed its plans to enter the spot Bitcoin ETF race in the US, it continues to adhere to strict regulations regarding the disclosure of forward-looking information.
As an exempt reporting adviser registered with the Securities and Exchange Commission, CoinShares Limited acts as the general partner for the private investment funds created by CoinShares Hedge Fund Solutions.
In conclusion, CoinShares sees great potential in the US as a leader in digital asset development and believes that the US regulators’ approach to treating digital assets will facilitate the fusion of traditional finance and crypto. However, the firm also remains committed to Europe and acknowledges that there is room for improvement in Europe’s approach to crypto. As CoinShares expands its presence in the US market, it will continue to follow regulations and consider new opportunities for product launches.