CoinShares has strategically moved to strengthen its presence in the U.S. market by exercising its option to acquire Valkyrie Funds, a firm specializing in digital asset management. This decision comes on the heels of the approval and debut of Valkyrie’s Bitcoin spot ETF, marking a milestone in CoinShares’ expansion in the United States.
Affiliated with Valkyrie Investments, Valkyrie Funds focuses on providing advisory services for Bitcoin ETFs. The recent SEC approval for Valkyrie’s products prompted CoinShares’ decision to acquire the firm. The fund, known as The Valkyrie Bitcoin Fund (BRRR), commenced operations following SEC approval.
CoinShares’ strategy aligns with its desire to replicate the success it experienced in the European market in the United States. CEO Jean-Marie Mognetti highlighted that this acquisition reflects the company’s appetite to be a global leader in the digital asset space. Moreover, he emphasized the intention to provide unparalleled access to regulated digital asset products for U.S. investors.
Once completed, the acquisition is expected to increase CoinShares’ assets under management (AUM) by approximately $110 million. This amount corresponds to the value of AUM across Valkyrie’s three cryptocurrency ETFs: The Valkyrie Bitcoin Fund (Nasdaq: BRRR), The Valkyrie Bitcoin and Ether Strategy ETF (Nasdaq: BTF), and The Valkyrie Bitcoin Miners ETF (Nasdaq: WGMI).
CoinShares Advances with the Merger Despite Valkyrie ETF’s Moderate Success
Despite Valkyrie’s Bitcoin ETF ranking as the third-lowest in trading volume among the recently debuted 11 ETFs, CoinShares proceeded confidently with the acquisition. Valkyrie Funds CEO Leah Wald expressed excitement about joining the firm and anticipated a promising new chapter in the digital asset investment landscape in the United States.
The acquisition is subject to the completion of due diligence, final board approval, and the conclusion of necessary legal agreements. Valkyrie Funds will continue to operate independently until the acquisition is finalized.
This consolidation represents a strategic move to capitalize on opportunities in the U.S. digital asset market, especially following the approval of ETFs. This has paved the way for the influx of new investors and substantial financial capital. The company thus demonstrates its commitment to global leadership in the emerging cryptocurrency space.