CoinShares, a leading digital asset investment firm, has announced its plan to acquire Valkyrie’s crypto ETF wing potentially. This potential acquisition marks a crucial step for CoinShares in expanding its global footprint in the digital asset management space.
A strategic option with global implications
CoinShares has secured an exclusive option to acquire Valkyrie Funds, the investment advisory business of Valkyrie Investments, known for its focus on crypto ETFs. This option, effective from November 16, 2023, to March 31, 2024, provides CoinShares with a significant opportunity to extend its influence in the U.S. market, a region where it has yet to establish a mainstream crypto passive product.
The deal, announced via a press statement, also includes a brand licensing agreement allowing Valkyrie to use the CoinShares name for specific products and regulatory filings. This includes its pending Bitcoin spot ETF, a highly anticipated product in the U.S. market. The agreement stipulates that should the U.S. Securities and Exchange Commission (SEC) approve the Valkyrie Bitcoin Fund, Valkyrie Investments plans to incorporate the CoinShares name, heralding CoinShares’ foray into the U.S. crypto ETF sector.
Jean-Marie Mognetti, CEO of CoinShares, highlighted the fragmented nature of the global ETF market and the significant opportunities this presents. The acquisition option is seen as an accelerator for CoinShares’ expansion into the U.S. market, leveraging its expertise in digital asset management at a global scale.
The U.S. market at a pivotal juncture
This potential acquisition comes at a time of heightened anticipation in the U.S. financial markets. The SEC has not yet approved a spot bitcoin ETF, a decision keenly awaited by several investment firms, including Franklin Templeton and BlackRock. The regulator has issued multiple delays, including a recent decision on Hashdex’s spot bitcoin ETF application.
The acquisition of Valkyrie’s ETF unit would represent a significant U.S. market entry for CoinShares, a Saint Helier, Jersey-based company whose shares trade on Nasdaq Stockholm. The deal’s timing aligns with growing speculation that the U.S. might soon approve a spot bitcoin ETF, which could dramatically widen the scope of bitcoin investing to a broader audience.
As the March 31, 2024, deadline approaches, the industry watches closely to see if CoinShares will exercise its option, potentially making a splash in the U.S. crypto ETF market. Bloomberg analyst James Seyffart remarked on the potential impact of this deal, underscoring its significance in bringing CoinShares into the U.S. market.