European cryptocurrency investment firm CoinShares is optimistic about cryptocurrency regulation in the United States as the company enters the new market.
On September 22, CoinShares officially announced the launch of its new division, CoinShares Hedge Fund Solutions, marking the first time the company presents its offers to qualified US investors.
CoinShares' entry into the US market comes at a time when many US crypto companies are considering expanding their businesses outside the country due to regulatory hurdles at home. One such company, cryptocurrency exchange Coinbase, has been actively Driving expansion in Europe and the UK. amid a lawsuit from the U.S. Securities and Exchange Commission for an alleged violation of securities laws.
Many cryptocurrency industry observers and participants have stated that the US government's approach to cryptocurrency regulation has been making the country "less attractive" for crypto companies.
But unlike many critics of US crypto regulation, CoinShares believes the US is a world leader in terms of digital asset development, a CoinShares spokesperson told CoinShares, stating:
โContrary to the belief that the United States is lagging in the adoption and regulation of cryptocurrencies, our perspective is determined by the approach of US regulators in treating digital assets similarly to traditional asset classes. โWe believe this stance will encourage and accelerate the merger of the two industries.โ
The CoinShares representative went on to say that the United States is home to 50% of global assets under management and is a dominant financial market. "Our assertion about its leadership in the digital asset space is influenced by observable integrations between legacy and emerging financial players," the spokesperson said, citing BlackRock's industry collaborations with Circle and Coinbase.
CoinShares' US expansion comes just months after CEO Jean-Marie Mognetti announced in July 2023. declared that Europe's approach to cryptocurrencies has been "even more problematic compared to the financial power of American institutions."
โThese financial giants, like BlackRock and Fidelity, who recently announced the introduction of a Bitcoin spot ETF, are well positioned to provide widespread crypto exposure,โ Mognetti wrote in an op-ed a few months ago.
Related: SEC Delays Bitcoin ETF Decision for BlackRock, Invesco and Bitwise
But while it is specifically optimistic about the crypto regulatory climate in the United States, CoinShares remains loyal to Europe. โCoinShares remains committed to Europe; Our HFS is registered in both the US and the UK,โ the company spokesperson told Cointelegraph, adding:
โOur perspective stems from the observation that in the US there is a more evident fusion of traditional finance (TradFi) and cryptocurrencies, which is not as pronounced in Europe, where the two sectors are not as interconnected.โ
CoinShares, one of the world's largest cryptocurrency investment companies, is a major provider of cryptocurrency exchange-traded products, or ETPs. The company launched its first Bitcoin (btc) exchange-traded product (ETP) in 2015. However, CoinShares has not yet revealed whether it plans to join the spot Bitcoin ETF race in the United States.
โWe must comply with strict regulations regarding the disclosure of forward-looking information. Therefore, we are unable to provide specific details regarding future CoinShares product launches,โ the CoinShares representative stated. CoinShares has been registered with the SEC as an exempt reporting advisor, and CoinShares Limited acts as general partner of the private investment funds created by CoinShares Hedge Fund Solutions.
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