Gemini Cryptocurrency exchange and custody service provider today announced the launch of a new service specifically tailored for funds and ETFs: Gemini Fund Solutions.
This new service is aimed at companies that enable retail investors to gain exposure to crypto assets through traditional investment channels
Becoming their own bank is not for everyone – including companies and fund managers looking to issue cryptocurrency investment vehicles.
Gemini as a custodian of a number of ETFs under regulatory approval
The announcement states that this new service will provide functions for “custody, clearing, transaction execution and other capital markets” as well as “training around the cryptocurrency market” and “as a central hub for cryptocurrency liquidity providers”.
The company currently offers custody services for fund issuers Purpose Investments: Within a few hours of trading at the beginning of the month, the transaction volume of the Ethereum ETF exceeded $100 million, and the first transaction of the Bitcoin ETF from Evolve Funds Group exceeded $500 million. Financial assets. Week. Gemini is also listed as the custodian of a number of ETFs under regulatory approval.
Gemini Fund Solutions was founded in part to meet the needs of custody services at the institutional level as retail demand for cryptocurrencies grows.
The statement said: “With the growing interest in cryptocurrencies, crypto funds have become an increasingly attractive option for fund managers looking to increase crypto exposure in their client portfolios. However, so far the market for providing these services to fund issuers has been fragmented,” indicated the announcement.
Although many institutions – like the oldest bank in the US, BNY Mellon – have announced that they will offer custody services, crypto custody requires some expertise and technical expertise, and some tradfi organizations may not be prepared for it. Similarly, ETFs designed to reflect the inventory of cryptocurrency assets require specialized technology and infrastructure – not to mention the experience.
Som Seif, Founder and CEO of Purpose Investments, said, “The services that Gemini provides, and most importantly its expertise, is critical to the launch and success of the Target Bitcoin ETF and Gemini makes our vision a reality and enables us to innovate and really democratize democratic cryptocurrency. “
Regulators believe that providing custody services to Canadian ETF providers may also make Gemini more willing to bid for the provision of US crypto ETFs alone.