European digital asset manager CoinShares has secured an exclusive option to acquire Valkyrie Funds, the ETF division of its American competitor, Valkyrie Investments. This includes the Valkyrie Bitcoin Fund, which is currently awaiting approval in the U.S.
On November 17, CoinShares announced that this strategic move is aimed at expanding its presence in the U.S. market, which is anticipated to become a major hub for ETF offerings. Jean-Marie Mognetti, CEO of CoinShares, expressed his belief that the acquisition of Valkyrie could enable the company to take advantage of the currently disjointed global ETF market.
Mognetti highlighted the development of crypto spot Exchange-Traded Products (ETPs) in Europe since 2015, a trend he expects to be replicated in the U.S. He sees this difference in market development as presenting both challenges and significant opportunities. The option for this acquisition will remain open until March 31, 2024. Until then, Valkyrie Funds will continue to operate independently, pending the completion of the acquisition by CoinShares.
Additionally, the two companies have agreed on a brand licensing arrangement, allowing the CoinShares name to be used in future S-1 filings with the U.S. Securities and Exchange Commission (SEC). These filings are necessary for registering a securities offering with the regulator, typically in the context of a company going public. Should the SEC approve the Valkyrie Bitcoin Fund, Valkyrie intends to incorporate the CoinShares brand into the ETF.
Valkyrie submitted its application for the spot Bitcoin ETF on June 21, joining BlackRock and several other financial institutions in the race.
CoinShares, managing over $3.2 billion in assets, has previously expressed confidence in the U.S. cryptocurrency ETF market. In September, the company reiterated its view that the U.S. is not falling behind in digital asset regulation, despite the current state of the market.
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