CoinShares, an investment management firm, has exercised its option to acquire Valkyrie Funds, a subsidiary of Valkyrie Investment Inc. This decision comes in the wake of the Securities and Exchange Commission (SEC) granting approval for CoinShares’ spot Bitcoin (BTC) ETF.
CoinShares solidifies position as a bridge between US and European markets
In a statement released on January 12, the company disclosed its decision to acquire Valkyrie Funds, outlining the reasons behind this move and its plans for expanding in the United States market with projected growth.
The company cited the approval of the spot Bitcoin (BTC) ETF by the SEC as a pivotal factor influencing their decision.
The Valkyrie Bitcoin Fund (BRRR) commenced trading on January 11, 2024, on Nasdaq, marking it among the first ETFs to receive approval from regulators in the United States. This decision to acquire Valkyrie Funds is in line with CoinShares’ strategic response to the positive developments in the U.S. regulatory landscape, aligning with their plans to broaden their digital asset offerings in the U.S. market.
CoinShares currently offers three products, including the Valkyrie Bitcoin Fund, the Valkyrie Bitcoin and Ether Strategy ETF (Nasdaq BTF), and the Valkyrie Bitcoin Miners’ ETF (Nasdaq WGMI). The prospects for expanding further into the U.S. market look promising.
The company anticipates an immediate addition of $110 million to its Assets Under Management (AUM), based on the AUM of these three products at the time of the announcement. This addition is significant, considering that CoinShares already boasts an AUM of $4.5 billion, thanks to substantial institutional fund inflows into cryptocurrency products throughout the previous year, bringing their total AUM to $52 billion.
The statement noted, “The exercise of this option signifies a pivotal step in the acquisition process, clearly demonstrating CoinShares’ commitment to acquiring Valkyrie Funds. Once finalized, this will lead to the direct integration of Valkyrie’s funds and operations into the CoinShares group.” This reflects CoinShares’ determination to complete the acquisition of Valkyrie Funds and integrate their offerings into their portfolio.
Spot ETF approvals attract European interests
Jean-Marie Mognetti, the CEO of CoinShares, emphasized the company’s leadership in European markets and its commitment to transparency for the protection of investors. He expressed CoinShares’ ambition to become a global leader in the digital asset space, aiming to replicate its successful European model in the United States. The company currently holds an impressive 40% market share in European crypto ETPs.
Leah Wald, the CEO of Valkyrie Funds, expressed a positive outlook on the acquisition, anticipating the company’s advancement following its establishment in Europe. She sees CoinShares’ renowned capabilities and track record, combined with Valkyrie Funds’ strengths, as a promising partnership that will propel them forward in the American digital asset investment landscape, particularly within the digital asset ETF market.
CoinShares secured the option to purchase Valkyrie Funds in November 2023, viewing it as an opportunity to accelerate its entry into the U.S. market and expand its global presence. The completion of the acquisition is expected once all legal requirements, due diligence, and company board approvals have been satisfied.
