Source: Adobestock

Investment management company, CoinShares has exercised the right to acquire Valkyrie Funds, a unit of Valkyrie Investment Inc. following the approval of its spot Bitcoin (BTC) ETF by the Securities and Exchange Commission (SEC).

CoinShares solidifies position as a bridge between US and European markets

In a Jan 12 announcement, the company disclosed the move, and its reasons, the prospects to expand in the United States market, and projected growth.

We are pleased to announce that we have exercised the option to acquire the U.S.-based digital asset manager @ValkyrieFunds LLC, whose Spot Bitcoin ETF (Valkyrie Bitcoin Fund) was approved this week.

This move not only reaffirms our desire to bring our long-time expertise in… pic.twitter.com/2MBaptQdLt

— CoinShares (@CoinSharesCo) January 12, 2024

According to the statement, the firm tipped the decision to acquire the company on the approval of the spot BTC ETF by the SEC.

The Valkyrie Bitcoin Fund (BRRR) began trading on Jan 11 2024 on Nasdaq becoming among the first approved ETFs by the regulator as the United States regulatory landscape on cryptocurrencies continues to evolve. 

“This move aligns with the positive developments in the US  regulatory landscape and CoinShares’ strategy to expand its digital asset offerings in the U.S. market.” 

Currently offering three products including the Valkyrie Bitcoin Fund, the Valkyrie Bitcoin and Ether Strategy ETF (Nasdaq BTF), and the Valkyrie Bitcoin Miners’ ETF (Nasdaq WGMI), all prospects look good for the expansion to more frontiers in the US.

The firm projects a $110 million immediate addition to its Assets Under Management (AUM) being the current AUM of the above three products at the time of the release.

This makes a crucial addition to the $4.5 billion in AUM posted by CoinShares after huge inflows of institutional funds on cryptocurrency products were recorded in the market throughout last year raising the wider AUM to $52 billion.

“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,” the statement read.

Spot ETF approvals attract European interests

Jean-Marie Mognetti, the CEO of CoinShares stated that the company has been at the fore of the European markets prioritizing transparency to protect investors. The CEO expressed the desire of the company to become a global leader in the digital asset space looking to replicate its European success in the United States. The firm holds 40% of the market share of European crypto ETPs.

On the other hand, Leah Wald, the CEO of Valkyrie Funds was positive about the acquisition seeking the advancement of the company after establishing itself in Europe.

“CoinShares’ renowned capabilities and proven success in combination with our strengths promise to propel us forward in the American digital asset investment sphere, particularly within the digital asset ETF market. Being part of such a strong and successful group marks a promising new chapter for us.” 

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

The company secured the option to buy Valkyrie Funds in November 2023 describing the move as accelerating its entry to the U.S. scene and deploying its skills globally.

The move is expected to be finalized after completion of legal formalities, due diligence, and the company board approval.

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