European digital asset management firm CoinShares has obtained an exclusive option to acquire Valkyrie Funds, the exchange-traded fund (ETF) arm of U.S.-based Valkyrie Investments. This acquisition includes Valkyrie Bitcoin Fund, which is awaiting approval in the United States. CoinShares announced this move on November 17, expressing its intent to expand its operations into the U.S., potentially turning the country into a hub for ETF products. Jean-Marie Mognetti, the CEO of CoinShares, stated that acquiring Valkyrie could be pivotal in capitalizing on the currently fragmented global ETF market.
Mognetti highlighted the evolution of crypto spot ETPs (Exchange-Traded Products) in Europe since 2015 as a significant development. He expressed the belief that the United States would also follow a similar path. According to him, this difference in market development poses both challenges and considerable opportunities. The option to acquire Valkyrie Funds will remain valid until March 31, 2024. Until the acquisition by CoinShares is finalized, Valkyrie Funds will continue operating independently.
Both CoinShares and Valkyrie agreed upon brand licensing terms. As per the agreement, the CoinShares name will be used in forthcoming S-1 filings with the U.S. Securities and Exchange Commission (SEC) to register securities offerings in case of a public offering. Should the SEC approve the Valkyrie Bitcoin Fund, the ETF is set to include the CoinShares name.
The Valkyrie Bitcoin Fund applied for public listing on June 21, entering the market alongside major financial entities like BlackRock and others. CoinShares, managing assets exceeding $3.2 billion, has shown optimism about the U.S. cryptocurrency ETF market, emphasizing the country's proactive approach to digital asset regulation in September. They highlighted that the U.S. is not trailing behind in efforts to regulate and integrate digital assets within its financial framework.
