Coinbase partners Wilshire Phoenix to launch a new cryptocurrency fund

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 It's getting harder to keep Coinbase out of the limelight these days. One of the leading crypto exchanges in the world, Coinbase, has teamed up with a New York-based investment firm Wilshire Phoenix to launch a new cryptocurrency-focused fund that is orgainized as a statutory trust and will be capped at $500 million, according to a press release on Wednesday.

The release goes on to add that the patent-pending system will provide exposure to Bitcoin and unlike other funds that simply hold Bitcoin will take care of the risks involved with the sudden price variations associated with the cryptocurrency.

The official press release goes on to state that the new fund would include features to meet investors' regulatory and operational needs, but it would not use derivatives or any other form leverage to achieve its objective. This will limit counterparty exposure and the often unnecessary additional fees that are normally associated with these types of financial products or methods.

Speaking about the imminent launch of the crypto fund, Sam McIngvale, General Manager of Coinbase Custody Trust 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."

This latest announcement comes just days after Coinbase announced that it has raised $300 million in a Series E funding round, led by Tiger Global Management, a US-based investment firm. The exchange plans to utilize the funds to "accelerate the adoption of cryptocurrencies and digital assets."

Echoing a heightened sense of optimism about the planned launch of the fund, Bill Herrmann, Founder & CEO of Wilshire Phoenix said, "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."

In another interesting development on Wednesday, the exchange COO, Asif Hirji clarified that a Coinbase IPO was not on the cards for now. "There's not going to be an IPO any time soon; we have so much to do," said Hirji, in an interview with Bloomberg.

See Also: Coinbase IPO not in the cards: COO says exchange has other priorities

Coinbase now worth $8 bn after fresh round of funding led by Tiger Global

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