Asset management firm Wilshire Phoenix has teamed up with Coinbase, one of the biggest cryptocurrency exchanges in the world to launch a cryptocurrency investment fund - a Press Release from Wilshire Phoenix announces. Together, the two companies intend that this would be a $500 Million fund which would help institutional investors gain easier access to digital assets.
Wilshire Phoenix is a New York-based investment firm and a major name when it comes to asset management services. Coinbase is the biggest cryptocurrency exchange in North America - and a giant in the world of cryptocurrencies. Coinbase Custody, with which Wilshire Phoenix has tied up with, is Coinbase’s secure cryptocurrency storage solution.
This fund will allow investors to purchase Bitcoins - but claims to be different from other funds in the matter of financial stability and security. The release claims that this is a secure fund, particularly when it comes to the sudden volatile movement of Bitcoins. This fund will be launched in 2018 and would be organized as a statutory trust. The upper limit for the fund will be capped in at $500 Million.
Coinbase Custody’s role in this partnership is that of being the storage partner which will help store and secure the funds while Wilshire Phoenix will be calling the shots when it comes to the client-base and investment strategies. Bill Herrmann, Founder & CEO of Wilshire Phoenix commented on this partnership with Coinbase Custody, saying:
“Coinbase Custody provides Wilshire Phoenix a best in class platform on which to securely store digital assets. They are steadfast in their commitment to implementing and executing solutions for institutional clients as opposed to merely talking about their future plans to do so. We are excited to have Coinbase in our corner and we look forward to our continued partnership in the months and years to come.”
This comes out as yet another step towards luring institutional investors towards the cryptocurrency space. Many cryptocurrency businesses, as well as mainstream investment and asset management firms, are launching cryptocurrency investment funds of late. It has been highlighted time and again this year that the next boom in the cryptocurrency markets would come when institutional investors begin to invest in cryptos.
Another lens that one could view this partnership from is with keeping in mind the news that Coinbase is gearing up to launch an Initial Public Offering (IPO) soon, as confirmed by CNBC’s Dan Neuner. This could be the first of multiple such partnerships between now and the launch that Coinbase comes out with to ensure it has the attention of the markets and an appropriate amount of goodwill with retail as well as with institutional investors.
Sam McIngvale, General Manager of Coinbase Custody Trust commented on this partnership, saying:
“We’re proud to partner with Wilshire Phoenix to provide institutional-grade, compliant digital-asset custody for its new fund. As a regulated Qualified Custodian and fiduciary, Coinbase Custody will not only offer Wilshire Phoenix clients’ secure storage for digital assets but also the ability to perform GAAP-compliant audits whenever the need arises.”
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