TLDR
- CoinShares has announced its intention to potentially acquire Valkyrie Funds to enter the U.S. crypto ETF market.
- The deal includes an exclusive option to acquire Valkyrie Funds and a brand licensing agreement for the Valkyrie Bitcoin Fund.
- CoinShares CEO Jean-Marie Mognetti sees the acquisition as an opportunity to expand its digital asset management expertise globally.
- Valkyrie CEO Leah Wald believes the partnership will foster growth and innovation in the digital asset market.
- The acquisition is subject to SEC approval and could significantly impact CoinShares’ presence in the U.S. market.
CoinShares has announced its intention to acquire Valkyrie Funds potentially. This move signals a strategic push into the U.S. cryptocurrency ETF market. The deal is contingent on regulatory approvals and includes a brand licensing agreement. The option to acquire Valkyrie Funds will be active until March 31, 2024. This marks CoinShares’ first significant step into the U.S. market with a crypto passive product.
Strategic Move to Strengthen CoinShares’ U.S. Presence
CoinShares aims to extend its reach into the U.S. crypto market through the acquisition of Valkyrie Funds. The deal includes a licensing agreement that allows Valkyrie to use the CoinShares name. This partnership will particularly focus on the Valkyrie Bitcoin Fund, which is awaiting approval from the SEC. CoinShares CEO Jean-Marie Mognetti expressed that this acquisition fits into the company’s goal to bridge the gap in the fragmented ETF market. The CEO sees this as a way to expand CoinShares’ expertise in digital asset management worldwide.
“By entering the U.S. market, we aim to leverage our expertise and better serve the growing demand for crypto ETFs,” said Mognetti.
CoinShares believes this acquisition will help them address the market’s disparity, especially between Europe and the U.S. The fragmented nature of the global ETF market provides both challenges and opportunities. CoinShares is positioning itself to capitalize on this shift.
Valkyrie CEO Welcomes Strategic Partnership with CoinShares
Valkyrie CEO Leah Wald expressed optimism about the strategic alignment with CoinShares. Wald sees this partnership as a way to drive growth and innovation within the digital asset market. She believes it will strengthen their product offerings and expand their reach in the cryptocurrency sector. Valkyrie Funds specializes in crypto-focused Exchange-Traded Funds (ETFs), and this move is expected to enhance their presence in the U.S. market.
Valkyrie is not the only player targeting a Bitcoin ETF in the U.S. Major financial institutions like Franklin Templeton and BlackRock are also eyeing a Bitcoin spot ETF. Despite the competition, Valkyrie and CoinShares are confident that this deal will provide a competitive edge. The SEC has yet to approve any spot Bitcoin ETFs, adding uncertainty to the market.
Bloomberg analyst James Seyffart suggests that the acquisition could significantly impact CoinShares’ U.S. market presence.
Have heard multiple rumors that Valkyrie's fund shop was up for potential sale but this is first i've heard of anything official. Potentially big news for @ValkyrieFunds & @CoinSharesCo. Would Bring Coinshares into US with a splash. They're currently a European crypto ETF issuer https://t.co/tYgxDmMbCJ
— James Seyffart (@JSeyff) November 16, 2023
If approved, the deal will allow CoinShares to gain a foothold in the rapidly evolving crypto ETF landscape.
