European cryptocurrency investment firm CoinShares is optimistic about U.S. cryptocurrency regulation as it enters new markets.
On September 22, CoinShares officially announced the establishment of a new division, CoinShares Hedge Fund Solutions, marking the first time the company has launched its products to qualified U.S. investors.
CoinShares’ entry into the U.S. market comes as many U.S. cryptocurrency companies are considering expanding their operations abroad due to regulatory hurdles at home. Cryptocurrency exchange Coinbase is one of them, and has been aggressively pushing for expansion in Europe and the UK as it faces a lawsuit from the U.S. Securities and Exchange Commission over alleged violations of securities laws.
Many cryptocurrency industry observers and participants claim that the U.S. government’s approach to cryptocurrency regulation has made the country “less attractive” to cryptocurrency companies.
But unlike many critics of U.S. cryptocurrency regulation, a CoinShares spokesperson told Cointelegraph that CoinShares believes the U.S. is a global leader in digital asset development, saying:
“Contrary to the view that the U.S. is lagging behind in cryptocurrency adoption and regulation, our view is informed by U.S. regulators’ approach to digital assets being similar to traditional asset classes. We believe this stance will encourage and accelerate both industries fusion.”
The CoinShares representative went on to say that the United States holds 50% of the world’s assets under management and is a dominant financial market. “Our assertion of its leadership in digital assets is informed by the apparent consolidation between traditional and emerging financial players,” the spokesperson said, citing BlackRock’s industry collaborations with Circle and Coinbase.
CoinShares’ U.S. expansion comes just months after CEO Jean-Marie Mognetti took over in July 2023 declare Europe’s attitude toward cryptocurrencies is “even more problematic than the financial strength of U.S. institutions.”
Mognetti wrote in a column a few months ago: “These financial giants — such as BlackRock and Fidelity, both of which recently announced the filing of Bitcoin spot ETFs — are well-positioned to offer broad crypto coverage. Currency exposure.”
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Although CoinShares is particularly bullish on the cryptocurrency regulatory environment in the United States, it remains loyal to Europe. “CoinShares remains committed to Europe; our HFS is registered in both the US and the UK,” a company spokesperson told Cointelegraph, adding:
“Our view stems from the observation that in the United States, the integration of traditional finance (TradFi) and cryptocurrencies is more obvious, while in Europe this integration is less obvious because the two industries are not interconnected. It’s not that obvious.”
CoinShares is one of the world’s largest cryptocurrency investment companies and a major provider of cryptocurrency exchange-traded products, or ETPs. The company launched the first Bitcoin (BTC) exchange-traded product (ETP) in 2015. However, CoinShares has not revealed whether it plans to join the U.S. spot Bitcoin ETF race.
“We are required to comply with strict regulations regarding the disclosure of forward-looking information. Therefore, we are unable to provide specific details of future product releases of CoinShares.” A CoinShares representative said. CoinShares is registered with the SEC as an exempt reporting adviser, and CoinShares Limited serves as the general partner of the private investment fund created by CoinShares Hedge Fund Solutions.
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