In the post-spot Bitcoin ETF (Exchange Traded Fund) landscape, players in the nascent sector are beginning to shuffle their cards to gain an edge. Their strategies are aimed at taking direct market share of the industry or using an indirect approach.
Strategic Move Follows SEC’s Approval of Valkyrie’s Bitcoin ETF
In a significant move to strengthen its foothold in the U.S. market, asset manager CoinShares has announced its decision to exercise its option to acquire Valkyrie, an important name in the U.S. digital asset management sphere.
This development, confirmed on January 12, 2023, could allow CoinShares to gain a stronger foothold in the sector, especially in the Bitcoin ETF world, where the new financial product has attracted billions in trading volume over its first day alone.
The acquisition stems directly from the recent approval by the Securities and Exchange Commission (SEC) of Valkyrie’s spot Bitcoin ETF, The Valkyrie Bitcoin Fund (BRRR). This product commenced trading on Nasdaq on January 11, 2024, as a part of the inaugural batch of issuers for such products in the U.S.
This event highlights the evolving U.S. regulatory environment and aligns seamlessly with CoinShares’ ambitions to broaden its digital asset offerings in the American market.
CoinShares Eyes U.S. Expansion with Valkyrie Funds Acquisition
Upon finalizing this acquisition, CoinShares, which currently manages assets worth $4.5 billion, is set to enhance its Assets Under Management (AUM) by approximately $110 million. This figure represents the current AUM within Valkyrie’s existing ETF products, including The Valkyrie Bitcoin Fund (Nasdaq: BRRR), The Valkyrie Bitcoin and Ether Strategy ETF (Nasdaq: BTF), and The Valkyrie Bitcoin Miners ETF (Nasdaq: WGMI), per a press release.
Jean-Marie Mognetti, CEO of CoinShares, expressed his enthusiasm for the acquisition, stating, “CoinShares has been a trailblazer in the European digital asset industry since 2014. Our decision to acquire Valkyrie Funds reflects our ambition to replicate our European success in the U.S. and offer American investors access to regulated digital asset products.”
Leah Wald, CEO of Valkyrie Funds, echoed these sentiments, highlighting the merger’s potential to drive innovation in the American digital asset investment market, particularly within the digital asset ETF sector.
The acquisition process involves comprehensive due diligence, finalizing legal agreements, and obtaining board approval from CoinShares. Valkyrie Funds will maintain its operational independence until the acquisition process is fully executed and concluded.
This move is poised to significantly impact the digital asset space, furthering CoinShares’ vision to become a global leader in this rapidly evolving industry.
Cover image from Unsplash, chart from Tradingview