CoinShares Secures Option to Buy Valkyrie’s ETF Business
In a significant development for the digital asset management industry, CoinShares International Limited (CoinShares) has obtained an option to acquire Valkyrie’s ETF business. CoinShares, a leading European investment company specializing in digital assets, is based on the island of Jersey off the coast of France. On the other hand, Valkyrie is a U.S. digital asset manager located in Nashville, Tenn., known for its actively managed cryptocurrency exchange-traded funds.
Expanding Into the U.S. Market
The option to purchase Valkyrie is a strategic move for CoinShares as it seeks to establish a foothold in the U.S. market. Valkyrie, like BlackRock and VanEck, has submitted an application to offer a spot Bitcoin ETF in the U.S. After initially being rejected, Valkyrie resubmitted an application for its Valkyrie Bitcoin Fund with growing anticipation that the SEC will approve at least one Bitcoin ETF before January 10.
“The option to acquire Valkyrie is accelerating our expansion into the U.S. market and the deployment of our digital asset management expertise globally,” said CoinShares CEO Jean-Marie Mognetti in a press release.
Strategic Expansion and Market Share
CoinShares’ acquisition option comes after the introduction of its hedge fund solutions division earlier this year, marking its first offering to U.S. investors. With more than $3.2 billion in assets under management, CoinShares has the largest market share of European crypto exchange-traded products.
Bringing Together Expertise
The acquisition option also includes a brand licensing agreement allowing Valkyrie Investments to use the “CoinShares” name in its S-1 filings with the SEC during the option period. Both companies are aiming to combine their strengths to deliver innovative products that address investors’ needs, according to Valkyrie CEO Leah Wald.
Regulatory Approvals and Future Prospects
The final acquisition is subject to regulatory approvals, satisfactory due diligence, and legal agreements. In the meantime, Valkyrie Funds will continue to operate independently. The strategic move positions CoinShares at the forefront of bridging European expertise with the growing U.S. digital asset market.
Hot Take: CoinShares Expands Into U.S. Market With Acquisition Option for Valkyrie’s ETF Business
CoinShares’ strategic decision to secure an option to buy Valkyrie’s ETF business marks a significant step in its expansion into the U.S. market while leveraging its strong position in European digital asset management. This move not only demonstrates CoinShares’ commitment to global growth but also sets the stage for collaboration between two industry leaders in delivering groundbreaking products aimed at addressing investor needs.
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