This acquisition will prepare CoinShares to position itself in the US markets ahead of the upcoming launch of spot Bitcoin ETFs.
Europe-based crypto asset management firm CoinShares has obtained an exclusive option to acquire the ETF unit of Valkyrie Investments. This will help CoinShares strategically position itself in the US market amid expectations of the Securities and Exchange Commission approving a spot bitcoin ETF.
The option, valid until March 31, offers CoinShares the opportunity for the acquisition, with specific financial details undisclosed. Currently, Europe offers spot crypto exchange-traded products, but the United States has yet to introduce them. However, there is ongoing speculation about the possibility of a spot Bitcoin ETF coming in 2024, potentially expanding access to Bitcoin investment for a broader audience. Speaking on the development, CEO of CoinShares, Jean-Marie Mognetti, said:
“The global ETF market is fragmented. The establishment of crypto spot ETPs in Europe since 2015, a development about to be mirrored in the US, is the perfect illustration. This disparity in market evolution presents both challenges and significant opportunities. The option to acquire Valkyrie is accelerating our expansion into the US market and the deployment of our digital asset management expertise globally.”
CoinShares is enthusiastic about the prospect of exploring the acquisition option of Valkyrie Fund. The deep understanding of the US market and a successful track record in creating investment products for crypto exposure by Valkyrie Fund align perfectly with CoinShares’ vision and operational ethos. If the acquisition moves forward, CoinShares aims to collaborate with Valkyrie’s founders to introduce high-quality digital asset products to American investors, said Mognetti.
CoinShares’ Growing Market Clout
For the past decade, CoinShares has been a key player in Europe’s crypto exchange-traded product market. They have the largest market share and manage over $3.2 billion in assets as of now. Now, CoinShares is looking to expand into the US market.
Also, they have the exclusive right to buy 100% of Valkyrie Funds, along with all associated rights related to the Valkyrie Bitcoin Fund and other ETFs held by Valkyrie Investments. However, this acquisition depends on getting regulatory approvals, consents, completing due diligence, and finalizing legal agreements.
Until the completion of the acquisition, Valkyrie Funds will continue to operate independently. This move follows CoinShares’ recent launch of CoinShares Hedge Fund Solutions in September 2023. Leah Wald, CEO of Valkyrie said:
“At the heart of our mission is to expand high-quality digital asset investment opportunities, joining CoinShares through this move underscores this shared ambition and vision. Together, with Valkyrie’s established US presence and existing offerings, alongside CoinShares global reach and infrastructure, we’re poised to deliver groundbreaking products aimed at solving investors’ needs.”
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