CoinShares has successfully secured an exclusive option to acquire the exchange-traded fund (ETF) division of Valkyrie Investments, a U.S.-based competitor. This includes the Valkyrie Bitcoin Fund, currently awaiting approval in the United States.
The move is strategically aimed at facilitating CoinShares’ expansion into the U.S., anticipating the country’s potential emergence as a central hub for ETF offerings.
Jean-Marie Mognetti, CEO of CoinShares, envisions leveraging the acquisition of Valkyrie to tap into the currently fragmented global ETF market.
CoinShares and Valkyrie Secure Exclusive Acquisition for ETF Division in Crypto ETP Evolution
Mognetti highlighted the evolution of crypto spot Exchange Traded Products (ETPs) in Europe since 2015, a trend expected to replicate in the U.S. The disparity in market development is viewed by Mognetti as both challenging and laden with significant opportunities.
The exclusive acquisition option will remain in effect until March 31, 2024. During this period, Valkyrie Funds will continue to operate independently until the completion of the acquisition by CoinShares.
In addition, the two cryptocurrency-focused firms have entered into a brand licensing agreement. This agreement stipulates the use of the CoinShares name in future S-1 filings with the Securities and Exchange Commission (SEC), which are utilized for registering securities offerings when companies plan to go public.
Valkyrie Plans CoinShares Integration Upon SEC Approval for Bitcoin Fund
In the event of SEC approval for the Valkyrie Bitcoin Fund, Valkyrie intends to incorporate the CoinShares name into the ETF. Valkyrie, along with BlackRock and several other financial firms, submitted an application for a spot Bitcoin ETF on June 21.
Expressing optimism about the U.S. cryptocurrency ETF market, CoinShares manages over $3.2 billion in assets. In September, the firm emphasized its active engagement in digital asset regulation. It made clear that the economic powerhouse is not lagging behind in this regard.