CoinShares to purchase Valkyrie’s ETF arm to expand in the US market

CoinShares, a European crypto investment firm, announced today that it will exercise its option to acquire Valkyrie Funds, its US competitor.

We are pleased to announce that we have exercised the option to acquire the U.S.-based digital asset manager @ValkyrieFunds LLC, whose Spot Bitcoin ETF (Valkyrie Bitcoin Fund) was approved this week.

This move not only reaffirms our desire to bring our long-time expertise in… pic.twitter.com/2MBaptQdLt

— CoinShares (@CoinSharesCo) January 12, 2024

The acquisition comes on the heels of the US Securities and Exchange Commission approving Valkyrie Fund’s application for a spot in Bitcoin ETF alongside ten other issuers on January 10. The company’s approved ETF began trading on Nasdaq as Valkyrie Bitcoin Fund (BRRR) a day after approval.

“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,” said CoinShares CEO Jean-Marie Mognetti in a press statement.

According to a CoinShares spokesperson, the planned acquisition and expansion into the US market was a “logical” move to allow the Europe-based firm to participate in the current competition for the spot Bitcoin ETF.

Notably, Valkyrie’s BRRR ETF only traded roughly $9 million worth of shares, which pales in comparison to other players in the market, such as the Grayscale Bitcoin Trust, which registered over $2.3 billion in volume.

The acquisition is pending due diligence, legal agreements, and board approval. Valkyrie will maintain independence until the deal closes, with the process expected to be completed by March 31, 2024.

This latest move by CoinShares mirrors deals between European crypto firms and US ETF issuers, such as the partnership between 21Shares and ARK Invest. As more spot crypto ETFs launch in the US, consolidation between American and European crypto investment firms can be expected to continue, capitalizing on the momentum and growing institutional interest.

CoinShares previously secured the option to buy Valkyrie’s crypto unit in November 2022. Valkyrie CEO Leah Wald said the combination of expertise would help “propel [us] forward in the American digital asset investment sphere, particularly within the digital asset ETF market.”