CoinShares, which in June 2017 launched the world’s first Ethereum-denominated fund, CoinShares Fund I, has announced a successor, CoinShares Fund II, to invest in digital assets such as ICO tokens.
Like its predecessor, the CoinShares Fund II is to be launched through the Jersey Private Fund Regime, which allows for quick regulatory approval for funds limited to a maximum of fifty “sophisticated investors”.
CoinShares co-principal Jean-Marie Mognetti said that the decision to launch a second fund was not only due to the success of the first, “which over a nine month period has delivered 92% net of fees outperformance against Ether”, but also to “demonstrate commitment” to the regulatory stance taken by the Jersey authorities. The Channel Island had, he said, created a “sound regulatory regime that supports innovative product offerings for investors.”
“A Huge Vote of Confidence”
In launching the fund CoinShares was advised by Jersey’s Carey Olsen investment funds team. Carey Olsen partner James Mulholland said that they were “delighted to be working once again with CoinShares on the establishment of their latest fund” and described the decision to use Jersey expertise as “a huge vote of confidence” in “Jersey’s position as a crypto-friendly jurisdiction.”
Meanwhile, CoinShares’ parent company Global Advisors has announced involvement in the “Komainu” venture along with Japanese bank Nomura and hardware wallet company Ledger.
According to Jez Mohideen, Nomura’s Global Chief Digital Officer, institutional involvement in digital assets has been “held back” by “operational and regulatory risk”. Komainu hopes to provide a new infrastructure which will bring about the required standards to “bring peace of mind to digital asset investors” as well as “enable better integration with more traditional investment vehicles such as mutual funds.”