CoinShares Expands into U.S: Launching Hedge Fund Division

Monday, 25/09/2023 | 05:18 GMT by Tareq Sikder
  • CoinShares returns to its roots with a hedge fund division.
  • It focuses on delivering a premium investor experience.
crypto

CoinShares has announced the establishment of its hedge fund division, CoinShares Hedge Fund Solutions. The company will be extending its offerings to qualified U.S. investors, marking its expansion beyond its European base.

CoinShares Targets Institutional Investors with Diverse Investment Products

CoinShares aims to cater to the diverse needs of institutional investors by providing a range of private investment products spanning both beta and alpha strategies, with hybrid options in between. The goal is to empower institutions to construct optimized cryptocurrency portfolios.

The company's vision is to offer a seamless experience and equip its institutional clients with the necessary tools and insights to navigate the digital asset investment landscape.

CoinShares Capital LLC, a subsidiary of CoinShares and a broker-dealer registered with the Financial Industry Regulatory Authority (FINRA), will lead its marketing efforts to reach qualified investors in the United States in support of CoinShares Hedge Fund Solutions' strategies and products. This initiative marks a return to CoinShares' roots, initially starting as the commodity hedge fund Global Advisors.

In 2014, it founded the regulated Global Advisors Bitcoin Investment Fund (GABI), which operated until 2017. This venture represents a progressive transformation for the company, leveraging its extensive experience in the crypto markets gained through its proprietary trading arm since 2016.

CoinShares is positioned to offer premium products that meet the due diligence requirements of institutional investors.

CoinShares CEO on the Rationale behind Strategic Expansion

To ensure the seamless launch of the new division, CoinShares has appointed Lewis Fellas as the Head of CoinShares Hedge Fund Solutions. With 23 years of industry experience, including seven years in digital assets, Lewis brings a wealth of expertise to drive the success of the new division. The division will harness the skills and experience of CoinShares' battle-tested trading and quantitative teams.

CoinShares' CEO, Jean-Marie Mognetti, commented on the strategic expansion: "In a changing macro environment prominently marked by interest rates and inflation, the demand for actively managed exposure to digital assets is a natural progression. Backed by a decade-long legacy in the digital asset industry and a team with more than two decades in hedge funds, the new division signifies the latest step in CoinShares’ evolution.”

“Our products focus on delivering a premium experience to our investors and we are delighted to enrich our long-only asset management offerings by returning to our core founding program.”

This strategic expansion into the US market underscores CoinShares' commitment to meet the evolving demands of the cryptocurrency investment landscape and provide institutional investors with tailored solutions in the rapidly evolving digital asset space.

The Head of Hedge Fund Solutions at CoinShares, Lewis Fellas, concluded: “CoinShares inspired my move into crypto asset management in 2016, so being able to lead the new division within the firm and further pioneer the space is an honour. The design of our strategies reflects the team’s deep and practical knowledge of digital assets and showcases the firm’s ability to develop new products that meet the demands of institutional investors.”

“The long-awaited return of interest rate-driven volatility is a great opportunity that we plan to capture with our novel fund products. Each product that will be offered is designed to mitigate counterparty risk whilst providing investors with clearly defined asset class and strategy exposures.”

CoinShares has announced the establishment of its hedge fund division, CoinShares Hedge Fund Solutions. The company will be extending its offerings to qualified U.S. investors, marking its expansion beyond its European base.

CoinShares Targets Institutional Investors with Diverse Investment Products

CoinShares aims to cater to the diverse needs of institutional investors by providing a range of private investment products spanning both beta and alpha strategies, with hybrid options in between. The goal is to empower institutions to construct optimized cryptocurrency portfolios.

The company's vision is to offer a seamless experience and equip its institutional clients with the necessary tools and insights to navigate the digital asset investment landscape.

CoinShares Capital LLC, a subsidiary of CoinShares and a broker-dealer registered with the Financial Industry Regulatory Authority (FINRA), will lead its marketing efforts to reach qualified investors in the United States in support of CoinShares Hedge Fund Solutions' strategies and products. This initiative marks a return to CoinShares' roots, initially starting as the commodity hedge fund Global Advisors.

In 2014, it founded the regulated Global Advisors Bitcoin Investment Fund (GABI), which operated until 2017. This venture represents a progressive transformation for the company, leveraging its extensive experience in the crypto markets gained through its proprietary trading arm since 2016.

CoinShares is positioned to offer premium products that meet the due diligence requirements of institutional investors.

CoinShares CEO on the Rationale behind Strategic Expansion

To ensure the seamless launch of the new division, CoinShares has appointed Lewis Fellas as the Head of CoinShares Hedge Fund Solutions. With 23 years of industry experience, including seven years in digital assets, Lewis brings a wealth of expertise to drive the success of the new division. The division will harness the skills and experience of CoinShares' battle-tested trading and quantitative teams.

CoinShares' CEO, Jean-Marie Mognetti, commented on the strategic expansion: "In a changing macro environment prominently marked by interest rates and inflation, the demand for actively managed exposure to digital assets is a natural progression. Backed by a decade-long legacy in the digital asset industry and a team with more than two decades in hedge funds, the new division signifies the latest step in CoinShares’ evolution.”

“Our products focus on delivering a premium experience to our investors and we are delighted to enrich our long-only asset management offerings by returning to our core founding program.”

This strategic expansion into the US market underscores CoinShares' commitment to meet the evolving demands of the cryptocurrency investment landscape and provide institutional investors with tailored solutions in the rapidly evolving digital asset space.

The Head of Hedge Fund Solutions at CoinShares, Lewis Fellas, concluded: “CoinShares inspired my move into crypto asset management in 2016, so being able to lead the new division within the firm and further pioneer the space is an honour. The design of our strategies reflects the team’s deep and practical knowledge of digital assets and showcases the firm’s ability to develop new products that meet the demands of institutional investors.”

“The long-awaited return of interest rate-driven volatility is a great opportunity that we plan to capture with our novel fund products. Each product that will be offered is designed to mitigate counterparty risk whilst providing investors with clearly defined asset class and strategy exposures.”

About the Author: Tareq Sikder
Tareq Sikder
  • 1198 Articles
  • 16 Followers
About the Author: Tareq Sikder
A Forex technical analyst and writer who has been engaged in financial writing for 12 years.
  • 1198 Articles
  • 16 Followers

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