European cryptocurrency investment firm CoinShares is expressing optimism about cryptocurrency regulation in the United States as it enters the new market. The firm recently announced the launch of its new division, CoinShares Hedge Fund Solutions, which will 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 to expand their businesses outside of the country due to regulatory hurdles at home.
One such firm, cryptocurrency exchange Coinbase, has been actively pursuing expansion in Europe and the United Kingdom amidst 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.
However, unlike many U.S. crypto regulation critics, CoinShares believes that the U.S. is a global leader in terms of digital asset development. The firm’s spokesperson stated that the U.S. regulators’ approach to treating digital assets akin to traditional asset classes will encourage the fusion of the two industries. CoinShares also points out that the U.S. is home to 50% of globally managed assets and is a dominant financial market.
CoinShares’ expansion into the U.S. market comes just a few months after CEO Jean-Marie Mognetti declared that Europe’s approach to crypto has been “even more problematic when compared to the financial might of U.S. institutions.” Mognetti highlighted the potential of financial behemoths like BlackRock and Fidelity, who have recently filed for a spot Bitcoin ETF, to provide widespread crypto exposure.
While CoinShares is bullish about the U.S. regulatory climate, it remains committed to Europe. The firm believes that in the U.S., there is a more apparent merging of traditional finance and crypto, which isn’t 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). It debuted its first Bitcoin ETP in 2015. While the firm has not disclosed whether it plans to join the spot Bitcoin ETF race in the United States, it remains regulated and registered with the SEC as an exempt reporting adviser. CoinShares Limited acts as the general partner for the private investment funds created by CoinShares Hedge Fund Solutions.
Overall, CoinShares’ entry into the U.S. market demonstrates optimism about cryptocurrency regulation in the country. Despite criticism of the U.S. government’s approach, CoinShares sees the U.S. as a leader in digital asset development and believes that the fusion of traditional finance and crypto will be encouraged in the U.S. CoinShares also remains committed to Europe, although it sees less integration between traditional finance and crypto in the region compared to the U.S.