- January 14, 2024
- Posted by: [email protected]
- Category:
CoinShares, an investment management company, has seized the opportunity to acquire Valkyrie Funds, a subsidiary of Valkyrie Investment Inc., following the recent approval of its spot Bitcoin (BTC) ETF by the Securities and Exchange Commission (SEC). The company officially announced this strategic move on January 12, emphasizing the desire to expand in the United States market and projecting significant growth.
The decision to acquire Valkyrie Funds was influenced by the SEC’s approval of the spot BTC ETF, as stated in the official announcement. The Valkyrie Bitcoin Fund (BRRR) commenced trading on January 11, 2024, on Nasdaq, marking one of the first ETFs approved by the regulator in the evolving regulatory landscape for cryptocurrencies in the United States.
CoinShares sees this acquisition as aligning with the positive developments in the US regulatory landscape and a strategic move to broaden its digital asset offerings in the American market. Currently offering three products, including the Valkyrie Bitcoin Fund, the Valkyrie Bitcoin and Ether Strategy ETF (Nasdaq BTF), and the Valkyrie Bitcoin Miners’ ETF (Nasdaq WGMI), CoinShares anticipates further expansion into new frontiers in the US.
The acquisition is projected to result in an immediate $110 million addition to CoinShares’ Assets Under Management (AUM), considering the current AUM of the three existing products at the time of the announcement. This significant addition complements CoinShares’ impressive AUM of $4.5 billion, which soared due to substantial inflows of institutional funds into cryptocurrency products throughout the past year, raising the total AUM to $52 billion.
CoinShares’ CEO, Jean-Marie Mognetti, emphasized the company’s commitment to transparency and investor protection in European markets. He expressed his ambition for CoinShares to become a global leader in the digital asset space, aiming to replicate its success in Europe and the United States. CoinShares currently holds a substantial 40% market share of European crypto ETPs.
Leah Wald, the CEO of Valkyrie Funds, expressed optimism about the acquisition, highlighting the potential for growth within the American digital asset investment sphere, particularly in the digital asset ETF market. She sees the integration into CoinShares as a promising new chapter for Valkyrie Funds after establishing itself in Europe.
The option to acquire Valkyrie Funds was secured by CoinShares in November 2023, with the move viewed as a strategic acceleration of its entry into the US market and the global deployment of its expertise. The completion of legal formalities, due diligence, and approval from both companies’ boards are expected before finalizing the acquisition.
