CoinShares eyes acquisition of Valkyrie Funds to expand into U.S. crypto ETF market

CoinShares has announced an option to potentially acquire Valkyrie Funds, signaling a strategic move to extend its footprint in the U.S. cryptocurrency ETF landscape, pending regulatory approvals.

CoinShares, a renowned name in cryptocurrency investments, has recently announced its plan to potentially acquire Valkyrie Funds, an investment advisory business specializing in crypto Exchange-Traded Funds (ETF). This announcement, made via a press statement on Thursday, marks a pivotal moment in the evolving landscape of crypto-focused investment products.

The deal, which includes an exclusive option to acquire Valkyrie Funds, active from Nov. 16 to March 31, 2024, also encompasses a brand licensing agreement. Under this agreement, Valkyrie can use the CoinShares name for specific products and regulatory filings, particularly its anticipated Bitcoin (BTC) spot ETF. This move is notable as it signifies CoinShares’ first foray into the U.S. market with a mainstream crypto passive product, pending SEC approval of the Valkyrie Bitcoin Fund.

CoinShares CEO Jean-Marie Mognetti highlights the fragmented nature of the global ETF market and sees this strategic decision as a way to bridge the gap and expand CoinShares’ digital asset management expertise globally. The disparity in market evolution, especially between Europe and the U.S., presents both challenges and significant opportunities for companies like CoinShares and Valkyrie.

Valkyrie CEO Leah Wald expressed enthusiasm about the partnership, viewing it as a strategic alignment with their vision of fostering growth and innovation in the digital asset market. This partnership is expected to enhance their offerings and expand their reach, benefiting both firms and their clients.

However, it’s important to note that Valkyrie is not the only player in the field. Other financial giants like Franklin Templeton and BlackRock are also competing for a spot Bitcoin ETF. The U.S. Securities and Exchange Commission (SEC) has yet to approve a spot Bitcoin ETF, having delayed decisions on various applications, including Hashdex’s spot Bitcoin ETF earlier in the week.

Bloomberg analyst James Seyffart remarks that this deal could significantly impact CoinShares’ presence in the U.S. market.