CoinShares Looks to Buy Valkyrie Funds Following Bitcoin ETF Clearance

CoinShares Looks to Buy Valkyrie Funds Following Bitcoin ETF Clearance

UTC by Benjamin Godfrey · 3 min read
CoinShares Looks to Buy Valkyrie Funds Following Bitcoin ETF Clearance
Photo: Shutterstock

Being the third lowest performer by trading volume among the 11 spot Bitcoin ETFs that debuted on Thursday, Valkyrie’s spot Bitcoin ETF garnered just under $9 million in trading volume during the day.

CoinShares International Limited, a leading player in the European digital asset industry, announced today that it has exercised its option to acquire Valkyrie Funds. This strategic move comes in the wake of the U.S. Securities and Exchange Commission’s (SEC) approval for Valkyrie’s spot Bitcoin ETF, which started trading on Nasdaq on January 11.

CoinShares Expands its US Presence

The acquisition aligns with CoinShares’ commitment to expanding its digital asset offerings in the US market, capitalizing on the positive developments in the regulatory ecosystem. The SEC’s clearance of Valkyrie’s Bitcoin ETF marks an important step in the maturation of the Bitcoin market in the United States.

Jean-Marie Mognetti, CEO of CoinShares, highlighted the importance of the move, stating:

“Exercising our option to acquire Valkyrie Funds aims at extending our European success in the US, offering unparalleled access to regulated digital asset products to American investors. This expansion is a clear statement of our appetite for acquisition to support our ambition to be a global leader in the digital asset space.”

Upon completion of the acquisition, CoinShares anticipates an increase in its existing Assets Under Management (AUM), currently standing at $4.5 billion, by approximately $110 million. This increment will be attributed to Valkyrie’s existing ETF products, including The Valkyrie Bitcoin Fund (BRRR), The Valkyrie Bitcoin and Ether Strategy ETF (BTF), and The Valkyrie Bitcoin Miners ETF (WGMI).

Despite being the third lowest performer by trading volume among the 11 spot Bitcoin ETFs that debuted on Thursday, Valkyrie’s spot Bitcoin ETF garnered just under $9 million in trading volume during the day. This figure pales in comparison to the $1 billion for BlackRock and $2.27 billion for the Grayscale Bitcoin Trust. Nevertheless, CoinShares’ strategic move demonstrates confidence in the potential for growth and success in Valkyrie’s offerings.

Leah Wald, CEO of Valkyrie Funds, echoed Mognetti’s sentiments, expressing excitement about joining forces with CoinShares. She remarked:

“CoinShares has established itself as a premier player in the digital asset space, and we’re excited to see how they continue advancing the space by leveraging Valkyrie’s team and expertise.”

It is worth noting that the acquisition is still pending finalization, awaiting satisfactory due diligence, necessary legal agreements, and approval from the respective boards of both companies. While the acquisition is pending, Valkyrie Funds will maintain its operational independence until the process is fully executed and finalized.

Bitcoin ETF in Europe and Other Markets

The strategic move by CoinShares comes at a time when Europe has already witnessed the launch of spot crypto Exchange-Traded Products, with the first spot Bitcoin ETF finally making its debut in July 2023. The European market, exemplified by London-based Jacobi Asset Management’s Bitcoin ETF on Euronext Amsterdam, showcases the potential for further global expansion in the digital asset space.

Besides the European market, Bitcoin ETFs have also made their emergence in other countries like Canada, Germany, and Brazil, underscoring the global embrace of the nascent asset class.

Funds & ETFs, Market News, News
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