CoinShares Acquires Valkyrie Funds, Expands into US Market
European asset manager CoinShares has exercised its option to acquire Valkyrie Funds, the portion of Valkyrie Investments that recently launched a spot Bitcoin ETF. CoinShares announced in November that it had acquired the option to buy the US ETF business, which includes the Valkyrie Bitcoin Fund trading on Nasdaq under the BRRR ticker. The acquisition comes after the US Securities and Exchange Commission approved BRRR and other Bitcoin funds for trading. CoinShares, with $4.5 billion in assets under management, is based in Jersey and specializes in digital assets. The acquisition will bring $110 million worth of assets under CoinShares’ control.
CoinShares Aims for US Market Success
CoinShares CEO Jean-Marie Mognetti stated that exercising the option to acquire Valkyrie Funds aims at extending the company’s success in the European market to the US, offering regulated digital asset products to American investors. However, CoinShares will face competition as BRRR did only $9 million worth of volume on its first day of trading, accounting for 0.2% of the total volume of all 10 spot Bitcoin ETFs on their debut. The majority of trading occurred on BlackRock’s iShares Bitcoin Trust, Fidelity Wise Original Bitcoin Trust, and Grayscale Bitcoin Trust.
Hot Take: CoinShares Expands into US Market with Valkyrie Funds Acquisition
CoinShares has made a strategic move to expand into the US market by acquiring Valkyrie Funds, part of Valkyrie Investments that launched a spot Bitcoin ETF. With this acquisition, CoinShares aims to offer regulated digital asset products to American investors and extend its success from dominating the European market. However, it faces stiff competition as BRRR, the Valkyrie Bitcoin Fund, did relatively low trading volume on its first day compared to other Bitcoin ETFs. Nevertheless, CoinShares is confident in its ability to leverage its expertise and assets under management to make a mark in the US crypto market.
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