CoinShares International, an European investment company specializing in digital assets, has made a significant step in its U.S. expansion strategy, according to Jean-Marie Mognetti, Chief Executive Officer of CoinShares.
“As the largest asset management arena and home to 50% of global assets, the U.S. market presents a unique opportunity for CoinShares,” Mognetti said.
The company just announced the opening of a U.S. central office based in New York City, that will strengthen the company’s presence in the world’s largest financial market.
The New York City office will serve as the primary hub for U.S. operations, allowing the Company to deepen its relationships with American counterparties and support the company’s growing client base across institutional and retail markets.
“The inauguration of our New York City Office marks a watershed moment in the Company’s expansion into the U.S. market, highlighting the growing significance of digital assets within the global financial ecosystem,” said Mognetti.
The digital asset industry is growing exponentially. In January 2024, the U.S. Securities and Exchange Commission’s approval of the Spot Bitcoin ETFs marked a pivotal moment in the financial industry, signalling a new era of digital asset integration into regulated financial markets.
According to recent data from CoinShares, digital asset inflows reached US$901m last week, pushing year-to-date inflows to US$27bn, nearly triple the 2021 record.
Regionally, the US saw the highest inflows at US$906m, with the recent surge in inflows influenced by US politics and likely linked to the Republicans poll gains.
Mognetti told Traders Magazine that CoinShares has been a pioneer since 2014, offering European investors regulated access to digital assets. “We’ve been the leader in Europe for a decade. Now, we’re aiming to take this success global and transform CoinShares into a worldwide investment powerhouse. It’d be crazy to think we could do that without starting in the U.S, which holds half of the world’s assets under management.”
“We started our investment in the US in 2023 by expanding our broker dealer registration in 53 U.S states and territories” he said.
“The U.S represents a critical market and was a natural expansion,” Mognetti told Traders Magazine.
CoinShares accelerated its U.S expansion with the acquisition of Valkyrie Funds in March 2024. Whilst restructuring and integrating this new business line, CoinShares has seen early positive signs of success, with its global assets under management (AUM) increasing to $6.5 billion.
Valkyrie’s portfolio of ETFs, including standout products like the CoinShares Valkyrie Bitcoin Fund ($BRRR) and the CoinShares Valkyrie Miners ETF ($WGMI), has contributed to CoinShares’ growth and established its foothold in the U.S. market, Mognetti said.
This platform should allow to introduce more actively managed products in the future, according to Mognetti.
“In doing so, we are preparing for the evolution of the ETF sector, which we believe will blend the sophistication of Hedge Funds with the accessibility of regulated listed products such as ETPs,” he said.
As a part of the growth initiative, CoinShares is actively recruiting for key roles in sales, marketing, operations, and compliance to support its commitment to scaling U.S. operations.
When asked about further acquisitions, Mognetti said that “we’re happy with where we are right now, but it’s never out of the question.”
According to Mognetti, the digital asset industry is rapidly transforming: “A week in crypto is like a month in traditional finance.”
“The speed at which everything moves is extremely brutal,” he added.
Listed on Nasdaq Stockholm, CoinShares was the first company to offer cryptocurrency ETPs in Europe and has consistently remained at the forefront of the digital asset investment space.
CoinShares is headquartered in Jersey, with offices in France, Sweden, Switzerland, the U.K. and the U.S. CoinShares is regulated in Jersey by the Jersey Financial Services Commission, in France by the Autorité des marchés financiers, in the U.S. by the Financial Industry Regulatory Authority.
The company’s approach in the US is encapsulated by CoinShares operational philosophy: “AUM for vanity, revenue for sanity.”
“Our ambition is to leverage our dual strengths in financial product structuring and active asset management, coupled with our technical understanding of the digital asset sector, to redefine industry standards and lead the way in innovation,” Mognetti concluded.
