Coinbase Custody Partners for New Crypto Asset Fund with Wilshire Phoenix
Coinbase, a large-scale cryptocurrency operator, partnered with Wilshire Phoenix, an asset management firm, to create a crypto-focused fund. The fund will have a cap pool of $500 million and it will also continue to grow the various institutional product offerings already provided by Coinbase, such as Coinbase Custody. Coinbase custody is the platform’s sector that specifically participated in the agreement with Wilshire.
Together, the two will work together the offer bitcoin institutional grade exposure. In terms of investment though, there is not much known. The bare minimum is that the two will have a patent-pending method for the mitigation of risk that comes with the volatility of cryptocurrency prices.
The announcement also clarified that the fund will be able to provide investors with elements that meet their operational and regulatory needs. Further, the fund may not use derivatives or other elements leverage to make its goals happen.
The fund has bas been private placement investments that are regularly sold to accredited investors so that they can receive exposure to traditional financial accounts. This type of system my be able to limit counterparty exposure and “the often unnecessary additional fees that are normally associated with these types of financial products or methods.”
The new fund’s establishment is one of the newest investment tools in the cryptocurrency realm. Another notable fund was CoinJar. To participate, investors needed $2.5 million AUD and a gross income of $250,000.
Sam McIngvale of Coinbase commented upon the relationship between it and Wilshire, stating,
“As a regulated Qualified Custodian and a 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.”
Bill Herrmann, the founder of Wilshire added, “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 an executing solutions for institutional clients as opposed to merely talking about their future plans to do so.”