Business News Report
September 22, 2023

CoinShares Announces Hedge Fund Division, Sets Sight on U.S. Market

In Brief

European digital asset management firm, CoinShares, has launched a hedge fund division in the U.S.

The company will make its private investment products available to U.S. institutions.

CoinShares, a European digital asset management firm, today announced the launch of CoinShares Hedge Fund Solutions, its new division in the United States. The company’s move aims to expand beyond its European base into the U.S. to provide eligible U.S. investors access to its offerings, through a range of private investment products.

The U.S. hedge fund division offers two Integrated Strategies funds based on Bitcoin and Ethereum. The Bitcoin Integrated Strategies (BIS) employs multiple strategies including call overwrite, quantitative analysis, and arbitrage, to outperform the returns of Bitcoin itself.

The allocation of these strategies is not fixed but dynamically adapts based on systematic evaluations of prevailing market conditions. The hedge fund claims that this approach results in a wide range of returns, spanning from futures arbitrage trading that generates pure alpha to sophisticated momentum models designed to capture shifting market trends.

“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,” CoinShares’ CEO, Jean-Marie Mognetti, said in a statement. “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.”

In parallel, the Ethereum Integrated Strategies (EIS) adopts a similar array of strategies seen in the BIS fund, but optimized for the Ethereum.

The allocation of strategies in the EIS fund is also dynamic and systematic, utilizing an ensemble approach to achieve fund-level returns.

The EIS fund has incorporated a Staking strategy. It serves as a responsive mechanism, diverting a portion of the fund towards Ethereum staking when the market experiences stagnation, low volatility, or bearish trends. 

The hedge fund says that this approach aims to secure robust returns during challenging market conditions.

CoinShares Capital LLC, a fully-owned subsidiary of CoinShares and a registered broker-dealer under the Financial Industry Regulatory Authority (FINRA), will be conducting marketing efforts aimed at eligible investors within the United States. This will support the promotion of CoinShares Hedge Fund Solutions’ range of strategies and products.

CoinShares has appointed asset manager Lewis Fellas as Head of CoinShares Hedge Fund Solutions. Fellas brings with him over 20 years of experience in crypto asset management and TradFi. 

“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,” Fellas said. “The long-awaited return of interest rate-driven volatility is a great opportunity that we plan to capture with our novel fund products.”

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via [email protected] with press pitches, announcements and interview opportunities.

More articles
Cindy Tan
Cindy Tan

Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via [email protected] with press pitches, announcements and interview opportunities.

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