European crypto asset manager CoinShares International Ltd has launched a new hedge fund division, CoinShares Hedge Fund Solutions, as part of the company’s expansion into the U.S. market. The Jersey-based firm intends to broaden its product offerings, with a focus on qualified U.S. investors, offering various private investment strategies.
CoinShares Capital LLC, a owned subsidiary of CoinShares and a FINRA-registered broker-dealer, will handle marketing activities aimed at qualified U.S. investors in support of CoinShares Hedge Fund Solutions’ strategies and products.
The division will be led by Lewis Fellas, a veteran in traditional asset management who expressed his excitement about pioneering within the crypto asset management space. CoinShares Hedge Fund Solutions will leverage CoinShares’ existing trading and quantitative teams to develop and manage its products.
CoinShares’ CEO, Jean-Marie Mognetti, highlighted that the demand for actively managed exposure to digital assets is growing, particularly in the context of changing macroeconomic conditions driven by interest rates and inflation.
This move represents a return to CoinShares’ origins, which started in 2013 as the commodity hedge fund Global Advisors and operated the regulated Global Advisors Bitcoin Investment Fund (GABI) from 2014 to 2017. CoinShares aims to leverage this heritage and its experience from its proprietary trading arm established in 2016 to strengthen its presence in the crypto market.
However, an investment firm revealed that crypto hedge funds underperformed last year, with 13% shutting down due to weak performance and banking challenges. On average, these funds generated only a 15% return in the first half of the year, significantly lower than Bitcoin’s 77% gain during the same period, as reported by Todayq News.
Earlier in a report by Todayq News on October 27, 2022, despite a bear market, Andreessen Horowitz (a16z) remained committed to crypto and Web3. Despite a crypto market dip, a16z continued investing, putting $40 million into Golden’s knowledge system in October 2022. Other hedge funds also showed interest, with $1.36 billion in VC investments in blockchain in August 2022, the lowest in the past year