In a groundbreaking development for the digital asset market, CoinShares, a European digital asset investment company, has announced the strategic acquisition of Valkyrie Funds, a US-based crypto exchange-traded fund (ETF) subsidiary of Valkyrie Investments. The acquisition positions CoinShares as a major player in the US Bitcoin ETF market.
CoinShares' acquisition of Valkyrie
The transaction, which involves the transfer of some $110 million in assets under management from Valkyrie to CoinShares, includes products such as the Valkyrie Bitcoin and Ether Strategy ETF (BTF.O), the Valkyrie Bitcoin Miners ETF (WGMI.O) and the recently listed Valkyrie Bitcoin Fund (BRRR.O). CoinShares, which already manages $4.5 billion in assets in cryptocurrency-focused commercial exchange products, marks its imminent entry into the US Bitcoin ETF market.
CoinShares and the Bitcoin ETF market
With this move, CoinShares seeks to extend its European success into the US, offering unprecedented access to regulated digital asset products to US investors. This strategic move is in direct response to the approval by the US Securities and Exchange Commission (SEC) of Valkyrie's spot Bitcoin ETF, as well as 10 other spot BTC ETFs.
Valkyrie and CoinShares: merging forces
Leah Wald, CEO of Valkyrie Funds, expressed her enthusiasm for the future under the CoinShares umbrella, highlighting the crypto company's recognised skills and proven success combined with Valkyrie's strengths, promising to propel their presence in the US digital asset investment space, particularly in the digital asset ETF market.
Next steps and implications
The acquisition process is pending completion of due diligence, the necessary legal agreements and final approval by the company's board of directors. Valkyrie Funds will maintain its operational independence until the acquisition is fully executed and completed.
The acquisition of Valkyrie represents a significant turning point in the Bitcoin ETF market in the US. By combining CoinShares' expertise and innovation with Valkyrie's reach and assets, this merger promises to redefine digital asset investing in the US and beyond, offering investors broad and regulated access to the emerging digital asset class.
