CoinShares, a prominent European digital asset manager, has secured an exclusive option to acquire Valkyrie Funds, the exchange-traded fund (ETF) unit of its U.S. counterpart, Valkyrie Investments. This strategic move is particularly noteworthy as it involves the Valkyrie Bitcoin Fund, a Bitcoin ETF currently awaiting regulatory approval in the United States.
Announced on November 17th, CoinShares views this acquisition as a crucial step in expanding its presence in the U.S., which is increasingly becoming a focal point for cryptocurrency ETF offerings. Jean-Marie Mognetti, the CEO of CoinShares, highlighted the potential of the U.S. market, envisioning the acquisition of Valkyrie as an opportunity to navigate the fragmented global ETF landscape.
Mognetti emphasized the parallel development of crypto spot Exchange Traded Products (ETPs) in Europe since 2015, drawing a comparison to the emerging trend in the U.S. He sees both challenges and substantial opportunities arising from the evolving nature of these markets.
The option to acquire Valkyrie Funds will remain active until March 31, 2024. During this period, Valkyrie Funds will continue to function as an independent entity until the acquisition by CoinShares is finalized.
In addition to the acquisition option, the two crypto-focused firms have entered into a brand licensing agreement. This agreement grants CoinShares the right to use its name in future S-1 filings submitted to the U.S. Securities and Exchange Commission (SEC) for securities offerings. Notably, if the SEC grants approval for the Valkyrie Bitcoin Fund, the ETF plans to incorporate the CoinShares name into its operations.
🚀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
Valkyrie initially filed for the spot Bitcoin ETF on June 21, alongside submissions from financial heavyweights like BlackRock and several other firms. The ETF landscape in the U.S. has been closely monitored, with various applications awaiting regulatory approval.
With assets under management exceeding $3.2 billion, CoinShares expressed optimism about the U.S. cryptocurrency ETF market back in September. The company asserted that the U.S. is not trailing behind in terms of digital asset regulation, signaling a positive outlook for further developments in the American crypto investment space.