CoinShares, a European digital asset management firm, has secured an exclusive option to acquire the exchange-traded fund (ETF) unit of its U.S. competitor, Valkyrie Investments. The acquisition includes the Valkyrie Bitcoin Fund, which is awaiting approval in the U.S. According to CoinShares, this move will help them expand into the U.S., which is expected to become the epicenter for ETF offerings.
The CEO of CoinShares, Jean-Marie Mognetti, stated that he hopes the Valkyrie acquisition will help them capitalize on what is currently a fragmented global ETF market. The option will remain active until March 31, 2024. For now, Valkyrie Funds will continue to operate as an independent entity until an acquisition by CoinShares is finalized.
Big News! Valkyrie is set to join the @CoinSharesCo family! We’re thrilled about this partnership, uniting our U.S. market insights with CoinShares’ global expertise. Together, we’re redefining digital asset investment in the U.S. and beyond! pic.twitter.com/s5URikl8Ci
— Valkyrie (@ValkyrieFunds) November 16, 2023
Brand Licensing Agreement and Future Plans
The two firms have also agreed on a brand licensing term where the CoinShares name would be used in future S-1 filings to the Securities and Exchange Commission (SEC) when companies plan to go public. If the SEC approves the Valkyrie Bitcoin Fund, Valkyrie plans to incorporate the CoinShares name into the ETF.
Valkyrie filed for the spot Bitcoin ETF on June 21, along with BlackRock and other financial firms. With over $3.2 billion in assets under management, CoinShares expressed optimism toward the U.S. cryptocurrency ETF market and reiterated that the economic powerhouse isn’t lagging on digital asset regulation.
Hot Take: European Firm Moves to Expand U.S. Presence with Potential Acquisition
CoinShares’ exclusive option to acquire Valkyrie’s ETF unit marks a strategic move that could significantly impact its presence in the U.S., providing a gateway for expansion into a potentially lucrative market for digital asset investments.
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