CoinShares International Limited has taken a significant step in its expansion strategy by exercising its option to acquire Valkyrie Funds LLC, a US-based digital asset manager specializing in actively managed cryptocurrency exchange-traded funds (ETFs).
This move comes in the wake of the recent approval by the US Securities and Exchange Commission (SEC) for the issuance of Valkyrie’s spot Bitcoin ETF, The Valkyrie Bitcoin Fund.
The Valkyrie Bitcoin Fund made its debut on January 11, trading on Nasdaq, and marked a historic moment as one of the first issuers of such products in the US.
CoinShares’ decision to acquire Valkyrie Funds is a strategic response to the positive developments in the US regulatory landscape, aligning with their broader goal to expand their digital asset offerings within the American market.
Upon successful completion, this acquisition is expected to bolster CoinShares’ existing assets under management (AUM) of $4.5 billion with an additional $110 million, representing the current AUM of Valkyrie’s existing ETF products.
These products include The Valkyrie Bitcoin Fund, The Valkyrie Bitcoin and Ether Strategy ETF, and The Valkyrie Bitcoin Miners ETF.
Jean-Marie Mognetti, CEO of CoinShares, emphasized the significance of this move, stating, “Exercising our option to acquire Valkyrie Funds aims at extending our European success in the US, offering unparalleled access to regulated digital asset products to American investors.
This expansion is a clear statement of our appetite for acquisition to support our ambition to be a global leader in the digital asset space.”
The acquisition process marks a pivotal step towards incorporating Valkyrie Funds into CoinShares’ portfolio, signaling the firm’s commitment to strengthening its position in the American digital asset investment market.
Leah Wald, CEO of Valkyrie Funds, expressed excitement about the partnership, highlighting CoinShares’ prominence in the digital asset sector and its potential to advance the space further through the integration of Valkyrie’s team and expertise.
However, it’s important to note that the acquisition is subject to several conditions, including satisfactory due diligence, finalization of legal agreements, and approval from the CoinShares board.
Until these requirements are met, Valkyrie Funds will continue to operate independently.
Once the acquisition is successfully executed and finalized, CoinShares anticipates a stronger presence in the US market, further solidifying its position as a global leader in the digital asset space.