© Forbes Jean-Marie Magnetti by Max Barnett, CEO of CoinSharesCoinShares offers an automated trading product for retail cryptocurrency investors that targets a niche market that is underserved by robo-advisors.
The platform, called HAL, connects users to their favorite exchanges and then automatically executes the trading strategies they choose. His trading bots are always active and take positions daily, hourly or weekly. CoinShares strategies trade Bitcoin, Ethereum, BNB, Matic, XRP, Cardano, Solana, Bitcoin Cash and Dogecoin. The service costs $19.90 per month and can be canceled at any time. The product is sold in the European Union and the United Kingdom, although the digital asset investment company does not restrict users by nationality or residence, except in countries approved by the Financial Action Task Force. It mainly offers four numerical styles.
- Smart, daily long-term trend followers are designed to remain neutral when prices decline. They work on a horizon of days or weeks.
- Pulse, an hourly long-short trend-follower can only benefit from price increases and declines on the one-hour trading horizon.
- A multi-coin strategy that trades Bitcoin and Ether hourly or daily signals based on artificial intelligence selection, neural networks to make decisions. The network is looking for the best approach for the next 24 hours.
- Dynamic, Low Volatility, Absolute Return Product combining different strategies.
Thematic indexing strategies are also proposed.
The company's spokesperson told Forbes that each user will have their own strategy to prevent the product from distorting the market, and that many consumers will take the same position, which can be used to their detriment. The company itself promises that the strategies it offers are not preloaded. HAL is CoinShare's first consumer service, previously the company focused on providing crypto-trading products to institutional and professional investors. One of the advantages is that the CoinShares platform is traded every hour as an asset, which is useful in the 24-hour cryptocurrency world. The product is implemented on behalf of the user, not the controller, through their exchange.
"We are now reaching out to people who are already in the cryptocurrency ecosystem and love to play with the ecosystem, but need some help in a more risk-adjusted way to manage this market volatility," said Jean-Marie. Magnetti, CEO of Coinshare.
"This is for any consumer with an exchange account in Europe who wants to take a less risk-based approach to their trading environment," said Mognitti.
Last year, CoinShares acquired French fintech Napoleon Group, which provides similar services to HAL. Napoleon has previously integrated with leading exchanges including Binance, Bitfinex, Bitmex, FTX and Bitstamp, providing CoinShares with an already approved customer base. Napoleon Asset Management is also licensed under the EU Alternative Investment Fund Managers Directive. The license will allow the British company to distribute its products in Europe after Brexit.
In the second quarter of the year, CoinShares posted a revenue of $14.4 million, but posted a loss of $100,000 after a $17.7 million loss following the liquidation of the company's Terra holdings following the collapse of the algorithmic stablecoin.
Robo-advisors have quickly gained attention since their introduction a decade ago. Financial services firm Charles Schwab, which has its own robo-advisor product, predicts that by 2022, $460 billion in assets will be managed by robo-advisors. However, traditional automated advisors have moved away from offering crypto products due to asset volatility, with crypto-native companies like Coinshare filling the gap.
In February, American automated investment platform Betterment ventured into the currency by acquiring Makara, a crypto investment advisor registered with the Securities and Exchange Commission. In announcing the acquisition, Betterment said the addition of crypto services would "differentiate" the company's product line. Other advisors like Wealthfront and SoFi offer exposure to Bitcoin and Ether, but no automated crypto products.
"We have successfully navigated several bear markets," Mognetti said. "At the end of the day, people tend to trust people who have been with them for a long time, so CoinShare is one of those parts of the cryptocurrency ecosystem that has been around for a very, very long time and we're going to be there for a long, long time."
HAL is a heuristically programmed algorithmic computer that aims to provide quantitative strategy to the company. But CoinShares in 2016 Since 2001, it has known that it is the name of the 1968 computer double-faced. In the movie "A Space Odyssey".
The hero of the film "was a computer that controlled all the automated aspects of this mission on Jupiter's moon to an unknown singularity, and HAL knows everything," said the spokesperson, and in parallel "our equipment is automatic, it controls everything" , and controls: the market in real time. At HAL, you have and you don't have to worry about your work.