Digital asset manager CoinShares has announced securing an exclusive option to acquire Valkyrie Funds, the exchange-traded fund (ETF) division of Valkyrie Investments. The strategic acquisition option represents the next phase of CoinShares’ penetration into the United States market, following the launch of CoinShares Hedge Fund Solutions in September of this year.
Acquisition Option for Valkyrie Funds
The option for CoinShares to acquire Valkyrie Funds is as of now active and will be in force until March 31, 2024. Nonetheless, the amount paid by the European asset manager for the option and the capacity acquisition costs remain undisclosed.
CoinShares CEO Jean-Marie Mognetti highlighted the fragmented nature of the worldwide ETF market and the trend expected to be replicated in the United States. According to Mognetti, this divergence in market evolution poses both challenges and substantial opportunities. The acquisition option for Valkyrie is expected to serve as a catalyst, expediting CoinShares’ expansion into the United States market and the broader worldwide deployment of its expertise in digital asset management.
Brand Licensing Agreement and Future Plans
Under the acquisition option deal, the two corporations have finalized a brand licensing agreement. Valkyrie Investments is granted a limited, revocable worldwide license to use the “CoinShares” name for its S-1 filings with the SEC throughout the option period. If the agency greenlights the Valkyrie Bitcoin (BTC) Fund, Valkyrie Investments plans to integrate the CoinShares name, marking CoinShares’ first deal into providing a mainstream cryptocurrency passive product in the United States market. CoinShares likewise has a special option to buy 100% of Valkyrie Funds and associated rights, including those related to the Valkyrie Bitcoin (BTC) Fund and other unreleased ETFs from Valkyrie Investments.
The most recent development comes days after CoinShares entered into a partnership with OKX and a partnership with custody provider Komainu for institutional segregated asset trading. The partnership intends to implement a robust legal structure and processes that alleviate counterparty risk while conducting high-volume trading.
CoinShares’ strategic acquisition option for Valkyrie Funds signifies a major move that can potentially dominate the United States market as the cryptocurrency industry continues to expand. This partnership could bring premier digital asset products to American investors and further strengthen CoinShares’ foothold in the worldwide digital asset management domain.
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