Wilshire Phoenix Working with Coinbase on Crypto Fund

The biggest crypto service operator in the United States, Coinbase, is joining forces with Wilshire Phoenix, a firm that manages assets, in order to launch a new fund that’s based on cryptocurrencies and it will start with a $500 million capital pool cap.


Institutional Goals

This collaboration will be building on a wide variety of offerings for institutional projects at Coinbase. That includes the project that was the main reason behind another partnership with an advisory company in NY; the project is referred to as Coinbase Custody.

This new endeavor will surely give BTC exposure as an institutional product. No more details about the crypto fund have been disclosed, just that it will make use of a patent application to reduce any risks that may come by way of the volatility of the coin or the ongoing crash in market prices.

It was also stated that the product will be compatible with certain regulations and needs from investors; however, it will not hold BTC or various cryptos directly. Furthermore, the fund will not be using derivatives or even leverage to fulfill the main goal.

On those terms, the product isn't quite like an ETF, but more similar to investments of non-public offerings that are sold to authorized investors to gain more exposure for cryptos in conventional accounts.

The main target of the project is to restrict the other party’s exposure and to eliminate unnecessary fees that are normally connected to such financial methods.

Varied Reactions to Coinbase’ Attempts

The release of this fund is only just the newest project emerging within the crypto space. CoinJar, an Australian-based crypto exchange platform, has recently released a fund that targets investments that are wholesale. A possible investor needs to have total assets that are not below AUD $2.5 million or has a total income of AUD $250,000 over the past 2 years to qualify.

The fact that Coinbase is releasing a new product is interesting since there had been reports that the tech giant was planning to close its service for index funds because of waning interest from investors.

Sam McIngvale, GM at Coinbase Custody, explained that as an authorized curator, not only are customers offered highly secured storage for their funds, but also the company will be able to carry out audits that are compliant with GAAP whenever it’s needed.

Wilshire Phoenix is getting the best platform for storage of digital funds, as per the founder and Chief Executive Officer of the company, Bill Herrmann.  McIngvale further noted that Coinbase Custody is very committed to implementing and executing institutional solutions instead of simply discussing plans for the future.

1 year ago

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