By
Bena Ilyas
April 22nd, 2024
CoinShares is already integrating Valkyrie into its ecosystem. Both teams are working together to ensure a smooth transition and maintain the high quality of currently existing product offerings.
CoinShares, a leading European digital asset investment firm, completed the acquisition of Valkyrie Funds LLC, the investment advisory department of Valkyrie Investments Inc, on March 12, 2024. This strategic move will solidify its position as an established player in the American market. Now, CoinShares’ global AUM has soared to $7.3 billion, with this new investment adding $530 million more.
It wasn’t an impulse buy – CoinShares had secured an option to acquire Valkryie in November 2023 and exercised it in January 2024 only after Valkyrie was able to launch its Bitcoin ETF. CoinShares’ strategic actions indicate their interest in buying existing companies and encouraging the development of new technologies within digital assets.
The Valkyrie Bitcoin Fund is a physically-backed Bitcoin ETF that is the top market-cap Bitcoin ETF in the US market and whose ‘Sponsor rights’ go to CoinShares as a result of purchasing Valkyrie. The acquisition provides CoinShares with a pipeline to further scale its digital-asset expertise in the US while adding $530 million of assets under management from BTF, WGMI, BRRR, and BTFX.
CoinShares Accelerates US Expansion with Valkyrie Acquisition
Jean-Marie Mognetti, the Chief Executive Officer of CoinShares, underlined the importance of this deal and said that the acquisition represents another milestone in our growth strategy with a particular emphasis this time in the US.
“The Valkyrie acquisition is yet another step in our growth strategy with a special focus this time in the US. This acquisition brings an additional $530 million AUM to CoinShares, which makes it a top line contributor from day one. More importantly, it broadens our product offerings, strengthens our innovation capacity, and increases by a factor of 15 our total addressable market, said Jean-Marie.
Looking forward, CoinShares intends to use Valkyrie’s ETF infrastructure to build a strong US asset management platform. They will concentrate on creating inventive and differentiated products that serve the ever-changing needs of American investors. Given CoinShares’ recent growth and experience in hedge fund management and digital asset strategies, the firm is well-placed to fulfill its promise.
Their current product set clearly shows their dedication to innovation, highlighted by WGMI, the highest-performing non-leveraged ETF in 2023 across all sectors, and the recently launched BTFX, a 2x leveraged Bitcoin futures ETF. So, these offerings go beyond just giving investors exposure to digital assets; rather, they provide them with a host of strategic alternatives.
Valkyrie Acquisition Fuels CoinShares’ Success
CoinShares is already integrating Valkyrie into its ecosystem. Both teams are working together to ensure a smooth transition and maintain the high quality of currently existing product offerings. Another aspect of the integration is to rebrand Valkyrie as part of CoinShares by the summer of 2024, underlining the consolidation of products and bolstering US market recognition.
Valkyrie will be a major CoinShares contributor as soon as it starts, with the initial AUM influx of $530 million and the final acquisition price depending on the acquired business’ financial performance over the earnout after three years.
CoinShares’ successful acquisition of Valkyrie demonstrates its determination to become a major player in the US digital asset market. Their focus on innovation and the expertise and infrastructure that came with Valkyrie gave them an advantage for a large share of this fast-developing market. CoinShares’s product offerings are carefully designed for investor choices to benefit stakeholders significantly.