The United States has emerged as a pivotal player in the cryptocurrency domain. Contrary to popular belief that the U.S. is lagging in terms of cryptocurrency adoption and regulation, CoinShares, a leading European cryptocurrency investment firm, has expressed a contrary viewpoint.
CoinShares, renowned for its crypto exchange-traded products in Europe, recently made its foray into the U.S. market. This strategic move comes at a time when several U.S.-based cryptocurrency firms are contemplating expanding their operations overseas, primarily due to perceived regulatory challenges in the domestic market.
Notably, Coinbase, a prominent cryptocurrency exchange, has been actively pushing its growth trajectory in Europe and the UK, especially in light of a lawsuit from the U.S. Securities and Exchange Commission (SEC) over alleged securities law violations.
However, CoinShares holds a different perspective. A spokesperson for the firm stated, “Contrary to the belief that the U.S. lags in crypto adoption and regulation, our perspective is shaped by the U.S. regulators’ approach to treating digital assets akin to traditional asset classes. This stance, we believe, will encourage and expedite the fusion of the two industries.”
The U.S., being home to half of the world’s managed assets, stands as a dominant force in the global financial market. CoinShares emphasized that the nation’s leadership in the digital assets arena is evident from the observable integrations between traditional and emerging financial entities. Collaborations like those between BlackRock and Circle, as well as Coinbase, serve as testament to this integration.
CoinShares’ expansion in the U.S. is timely, especially considering recent comments from their CEO, Jean-Marie Mognetti. In July 2023, Mognetti highlighted that Europe’s approach to cryptocurrency seemed more challenging when juxtaposed with the financial prowess of U.S. institutions. He pointed out that financial giants like BlackRock and Fidelity, which recently announced the filing of a spot BitcoinETF, are in an optimal position to offer widespread cryptocurrency exposure.
While the U.S. presents a favorable environment, CoinShares remains dedicated to its European roots. The firm’s commitment to both the U.S. and Europe is evident in its dual registration in these regions. The spokesperson added, “Our perspective stems from the observation that in the U.S., there is a more apparent merging of traditional finance — TradFi — and crypto, which isn’t as pronounced in Europe where the two sectors aren’t as interconnected.”
CoinShares, one of the world’s premier crypto investment entities, has been a significant provider of crypto exchange-traded products (ETPs).
The firm launched its inaugural Bitcoin ETP in 2015. As of now, it remains undisclosed whether CoinShares plans to join the spot Bitcoin ETF race in the U.S. However, the firm has been registered with the SEC as an exempt reporting adviser, with CoinShares Limited serving as the general partner for the private investment funds established by CoinShares Hedge Fund Solutions.