CoinShares to expand its US business through the acquisition of Valkyrie

The company promises to provide Americans with innovative solutions for regulated investment in digital assets

12.01.2024 - 15:19

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What’s new? Investment firm CoinShares has announced the acquisition of asset manager Valkyrie, whose spot bitcoin exchange-traded fund (ETF) Valkyrie Bitcoin Fund under the ticker BRRRR previously received US regulatory approval to list and trade on the Nasdaq stock exchange. CoinShares said it has years of experience with exchange-traded products (ETPs) in the European market and through the deal will be able to offer Americans innovative solutions for regulated investment in digital assets.

Press release

What else is known? The transaction was accomplished through the exercise of an option to acquire. CoinShares seized the opportunity due to the approval of the Valkyrie spot BTC ETF, which indicates positive developments in the US regulatory environment and aligns with the company’s strategy to expand in the local market, according to the press release.

Bitcoin ETFs trading volume exceeds $4,5 billion at the end of the first day

Half of that amount came from Grayscale’s exchange-traded fund

CoinShares’ assets under management (AUM) are expected to increase by $110 million upon completion of the transaction, in addition to the current $4,5 billion. The amount matches the AUM of all existing Valkyrie exchange-traded funds, including BRRR, as well as the Valkyrie Bitcoin and Ether Strategy ETF (BTF) and the Valkyrie Bitcoin Miners ETF (WGMI), which are also traded on Nasdaq.

CoinShares CEO Jean-Marie Mognetti noted that the company is a leader in the European market, controlling 40% of the capital deployed in cryptocurrency ETPs. “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,” he emphasized.

For now, the deal is still in the due diligence phase, which will be followed by the conclusion of the necessary agreements and a vote of the board of directors. Until then, Valkyrie retains its operational independence. Valkyrie’s CEO noted that CoinShares’ capabilities will move the company forward in the US digital asset investment space.

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