CoinShares utilizes the option to acquire Valkyrie, said CoinShares CEO Jean-Marie Mognetti on January 12, 2024.
After securing the option to acquire the crypto unit of Valkyrie in November 2023, CoinShares has recently announced that it is exercising its option to purchase the spot Bitcoin ETF listing of Valkyrie now, after Valkyries ETF was listed on Nasdaq, following SEC’s approval of spot Bitcoin ETF listing on exchanges.
The leading European alternative asset manager specializing in digital assets’ recent move to acquire its United States competitor, Valkyrie, will undoubtedly help its ambition to enter the U.S. market.
While CoinShares hasn’t made the terms of the deal public, they have reiterated their mission to become a leading global investment company, and entering the U.S. market has been a logical step since the approval of spot Bitcoin ETF.
The spokesperson from CoinShares, while talking to a news media outlet, said: “CoinShares aims to be the leading global investment company specializing in digital assets. It was only logical for us to expand into the U.S. and join the race for the spot Bitcoin ETF.”
The United States Securities and Exchange Commission, the SEC, approved 11 spot Bitcoin ETF applications on January 10 2024, and Valkyrie’s spot Bitcoin ETF was listed later on the Nasdaq under the ticker symbol BRRR.
On the first day of trading, Valkyrie’s BRRR ETF traded around $9 million shares. Yahoo Finance shared the data on their website. Valkyrie’s BRRR performance was slow compared to the performance of its competitors. Grayscale alone handled $2 billion worth of trades related to spot Bitcoin ETF.
The acquisition is currently awaiting the successful completion of thorough due diligence, the finalization of essential legal agreements, and the ultimate approval from the company’s board.
According to the announcement, Valkyrie Funds will retain operational autonomy until the acquisition is completed and confirmed. CoinShares originally obtained the option to acquire Valkyrie’s cryptocurrency unit in November 2023, which is anticipated to remain in effect until March 31.
CoinShares’ CEO Jean-Marie Mognetti said that this was the opportune moment for the European-based investment giant to expand its digital assets offering in the U.S. market following the positive developments in the U.S. regulatory landscape related to cryptocurrency.
His comments on the recent acquisition stated:” Exercising our option to acquire Valkyrie Funds aims at extending our European success in the U.S, offering unparalleled access to regulated digital asset products to American investors.”
Valkyrie’s CEO, Leah Wald, also expressed positive remarks regarding this recent acquisition. Wald stated that CoinShares’ experience and Valkyrie’s strength will help propel the company forward and fast-track it to new heights in the American digital investment landscape, especially in the digital asset ETF market.
The possible collaboration centred around an ETF between Valkyrie and CoinShares resembles existing partnerships between prominent European crypto investment firms and US-based spot Bitcoin ETF issuers.
CoinShares was launched in 2015 as a digital asset management firm that provides cryptocurrency investment solutions.
The company gained popularity in the digital asset landscape by offering cryptocurrency investment products, including exchange-traded products (ETPs) and funds, allowing institutional and retail investors to gain exposure to the emerging digital asset market.
Notably, 21Shares, a significant issuer of crypto exchange-traded products in Europe, has joined forces with ARK Invest to launch the ARK Invest and 21Shares Bitcoin ETF. This ETF, trading under the ticker symbol ARKB, commenced trading on the Cboe exchange.
