The team behind XBT Provider, issuer of two Bitcoin Exchange Traded Notes (ETNs), and GABI, the first regulated Bitcoin hedge fund, has combined those two entities to launch CoinShares, a product that has $300 million in crypto-assets.
CoinShares is an important player in the world of cryptocurrency. The team behind its products is composed of alumni from JP Morgan (JPM) , Lehman Brothers and State Street (STT) ; plus, the team has a near two-decade record in (alternative) investment management.
In a statement, CoinShares said it is "the first branded line-up of products in crypto -- think iShares or SPDR." That's a sign of the times in this rapidly maturing space -- especially at a time when even Goldman Sachs (GS) is considering a trading operation that focuses on Bitcoin and Fidelity is letting blockchain users track their crypto investments along with their traditional investments..
CoinShares officials say they aim to brand themselves similar to iShares in traditional finance with the goal of providing crypto investors with a familiar brand they can trust and grow with.
Now is inflection point in crypto-finance, coming off rapid growth in investment access in last six months: Hargreaves Lansdown in the U.K.; SocGen in France; and UniCredit, ComDirect and SaxoBank in Denmark have all began to offer client access to bitcoin exposure through XBT Provider ETNs.
"We are bringing these pioneering products under one brand so that investors can grow with a familiar partner," said Daniel Masters, co-principal at CoinShares, commenting on the launch. "It's the next logical step in professionalizing crypto-finance - as more assets mature in the space, more investors will demand exposure; and we will continue our focus on providing professional grade access. This is about giving those investors a standard and brand they can trust as we enter this next phase of crypto-investment."
"Maturity is really the word that comes to mind here," said Jean Marie Mognetti, co-principal at CoinShares. "In the last three years, we have seen Bitcoin go from a confusing topic in board rooms to a hotly debated investment strategy; consequently, our offering of products has grown to suit this changing environment."
Governments and Traditional Financial Institutions Fight
"We have seen governments and traditional financial institutions fight, fail, embrace and ban Bitcoin," said Ryan Radloff, co-principal at CoinShares. "We have seen a futures market form, leverage layers deepen and merchant adoption increase."
He explained that in the last 18 months, at least 15 cryptocurrency funds hit the market and at least five crypto-based investment products are currently pending review with regulators in the U.S. and elsewhere.
"Now, CoinShares represents the first branded family of investment products in crypto-finance and we could not be more excited to continue to deliver smart access to the crypto-revolution," said Radloff.
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