CoinShares Acquires Purchase Option for Valkyrie's Cryptocurrency ETF Division
CoinShares expands into the U.S. market with strategic acquisition of Valkyrie Funds, including the pending Valkyrie Bitcoin Fund
CoinShares, a leading European digital asset management firm, recently announced its strategic move to acquire Valkyrie Funds, the ETF arm of Valkyrie Investments, a notable player in the United States. This acquisition includes the Valkyrie Bitcoin Fund, which is currently pending approval in the U.S.
The announcement, made on November 17, marks a significant step for CoinShares in its expansion into the U.S. market, which is rapidly becoming a key area for ETF offerings. Jean-Marie Mognetti, CEO of CoinShares, emphasized the potential of this acquisition to leverage opportunities in the global ETF market, which he notes is currently fragmented.
????Exciting update! @CoinSharesCo secures an option to acquire @ValkyrieFunds, uniting our strengths to create a global one-stop-shop in digital asset investments. This marks a strategic leap towards market leadership and bolsters our strong presence in the U.S.!… pic.twitter.com/0BPNGC518P — CoinShares (@CoinSharesCo) November 16, 2023
Mognetti pointed out the parallel between the rise of crypto spot ETPs in Europe since 2015 and the emerging trends in the U.S. market. He believes that these market differences present unique challenges and significant growth opportunities for CoinShares.
The agreement grants CoinShares an exclusive option to complete this acquisition by March 31, 2024. Until then, Valkyrie Funds will operate independently, pending the finalization of the acquisition. In addition to the acquisition, CoinShares and Valkyrie have entered into a brand licensing agreement. This agreement allows the CoinShares name to be used in future S-1 filings with the U.S. Securities and Exchange Commission, a standard procedure for companies preparing to go public.
The integration of the CoinShares brand is also planned for the Valkyrie Bitcoin Fund, contingent on its approval by the SEC. Valkyrie initiated the filing for this spot Bitcoin ETF on June 21, alongside other financial institutions such as BlackRock.
CoinShares, with over $3.2 billion in assets under management, has been optimistic about the prospects of the U.S. cryptocurrency ETF market. The firm has previously expressed confidence in the U.S.'s regulatory approach to digital assets, suggesting a robust and evolving market.