CoinShares acquires the rights to buy Valkyrie’s crypto ETF unit
European digital asset management company CoinShares has acquired the exchange-traded fund (ETF) unit of US rival Valkyrie Investments, the Valkyrie bitcoin fund that is awaiting approval in the US.
CoinShares was founded in 2010. On Nov. 17, it said the move would help it expand into the U.S., which could soon become a hub for ETF offerings. Jean-Marie Mognetti, the firm's chief executive, added that he hopes the acquisition of Valkyrie will help it capitalize on the currently fragmented global ETF market.
“The establishment of crypto spot ETPs in Europe since 2015 is a perfect example of the growth that has been mirrored in the US,” said Mognetti. “This diversity in market evolution presents both challenges and significant opportunities.”
Exciting update! @CoinSharesCo confirms option to acquire @ValkyrieFunds, uniting our strengths to create a global one-stop-shop in digital asset investments. This marks a strategic shift in market leadership and reinforces our strong presence in the US!…pic.twitter.com/0BPNGC518P
— CoinShares (@CoinSharesCo) November 16, 2023
The option remains active until March 31, 2024. For now, Valkyrie Funds will continue to operate as an independent entity pending the acquisition by CoinShares.
Big news! Valkyrie is set to join the @CoinSharesCo family! We are excited about this partnership, combining our US market insights with CoinShares' global expertise. Together, we're redefining digital asset investing in the US and beyond! pic.twitter.com/s5URikl8Ci
— Valkyrie (@ValkyrieFunds) November 16, 2023
The two crypto-centric firms also agreed to a product license term under which the CoinShares name will be filed in future S-1 filings with the Securities and Exchange Commission — used to file securities offerings with the regulator when companies plan to go public.
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If the SEC approves the Valkyrie Bitcoin Fund, Valkyrie plans to incorporate the CoinShares name into the ETF.
Valkyrie launched its Bitcoin ETF on June 21, along with BlackRock and a host of other financial firms.
CoinShares, which oversees more than $3.2 billion in assets under management, expressed optimism for the US cryptocurrency ETF in September, saying the economic powerhouse is not lagging behind digital asset control.
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