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US Asset Manager and Coinbase Partner for Fresh Crytocurrency Fund

US cryptocurrency provider- Coinbase, and Asset Manager organization- Wilshire Phoenix, are now partners to provide a fresh crypto fund which will originally have a capital cap of $500M.

The latest deal builds on Conibase’s wide range of organizational product offering, such as Coinbase custody, which was the firm’s department that came into agreement with Wilshire Phoenix.

The Joint Venture

The latest venture provides official grade exposure to the Bitcoin industry. However, the two firms did not disclose any other information about the latest partnership. But clients shouldn’t worry since the Coinbase said that it employs a thorough approach to minimize risks that might arise from huge volatility.

The official statement reads that the new fund will include features to fulfill investors’ operational and regulatory needs. However, that does not mean that it will ultimately hold multiple cryptocurrencies or Bitcoin. Additionally, the crypto fund won’t use any form of leverage or derivatives to achieve its purpose.

In that way, it will not be similar to an EFT but more like a private placement investment like the one sold to real investors. This will enable them to have the right exposure to cryptocurrencies in a customer financial account. The aim, it said, is to minimize counterparty exposure. And “the regular unnecessary fees that are associated with those types of methods or financial products.

Mixed News about Coinbase’s New Push

The release of the crypto fund is the freshest thing in the industry of cryptocurrency. Just last month, the Australian-based Coinjar came up with an index that targets the wholesale dealers. The index is known as “The Coinjar Digital Currency Fund.”

To qualify, a person must have at a net worth of at least AUD$2.5M. Or have had a gross income of at least AUD$250,000 for two years. The announcement is a bit surprising since reports suggest that Coinbase is shutting its index fund product. This is because of low interest from investors.

Comment from the Managers

The General Manager of Coinbase Custody Trust, Sam Mclngvale, said that Coinbase will offer Wilshire clients’ secure storage for digital assets. It will also offer them the ability to do GAAP-compliant audits when a need arises.

“Coinbase offers Wilshire the best in a class stage for securing store digital asset. They are sturdy in their commitment to providing a solution for clients. They don’t just talk about future plans”, said Bill Herrmann, CEO, and Founder of Wilshire.

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