The fund will provide exposure to cryptocurrencies to institutional investors

The fund’s features are designed to meet investors’ operational and regulatory needs

The objective is to limit counter-party exposure and the frequent additional fees

Coinbase, a leading U.S. based cryptocurrency exchange, is in the limelight once again, this time teaming up with New York-based Wilshire Phoenix Asset Manager. The new partnership is launching a cryptocurrency-focused fund that is dedicated as a statutory trust to be capped at $500 million specifically for institutional investors.

Cryptocurrencies to get Institutional Exposure

The Wednesday October 31, 2018 joint press release states that their patent pending system is aimed at providing exposure to cryptocurrencies like Bitcoin. The new fund will be dissimilar to others that only hold customers digital assets since it will cover any risks associated with price variations in the cryptocurrency market.

The new fund, according to the statement, will include features that are designed to meet investors’ operational and regulatory needs but will not use derivatives or other forms of leverage to reach the goal. The aim is to limit counter-party exposure and the frequent additional fees that usually come with these types of financial products and investment methods.

The fund is expected to more like a private placement investment and unlike an ETF; the former are sold to accredited investors to help them get exposure to digital currencies in traditional financial accounts. Commenting about the pending launch, the General Manager of Coinbase Custody trust Sam McIngvale said:

“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.”

Coinbase IPO Soon?

News about the latest partnership follows the latest development that said Coinbase had raised $300 million via a series E funding round championed by Tiger Global Management, another U.S. based investment firm to help them expedite the adoption of cryptocurrencies and digital assets.

The leading cryptocurrency exchange also recently got an approval to act as cryptocurrency custody. The approval enables Coinbase Custody Trust Company to operate a standalone independently capitalized business after meeting the state’s strictest standards for capitalization, anti-money laundering procedures, confidentiality, security, and storage.

There is now heightened optimism surrounding the looming launch if the fund which is captured by the words of the Founder and CEO of Wilshire Phoenix who said: