Key Takeaways
- The acquisition includes Valkyrie’s Bitcoin and Ether Strategy ETF (BTF) and the Bitcoin Miners ETF (WGMI)
- On Wednesday, Valkyrie’s spot bitcoin ETF received SEC approval.
CoinShares, the European crypto asset manager, has made a significant move into the U.S. market by exercising its option to acquire the exchange-traded fund (ETF) unit of Valkyrie Investments, based in Nashville, Tennessee. This strategic decision comes right after the Securities and Exchange Commission (SEC) approved spot bitcoin ETFs, including Valkyrie’s Bitcoin Fund (BRRR), which debuted on Thursday and quickly amassed $4.6 billion in trading volume.
CoinShares, headquartered in Saint Helier, Jersey, had secured the option on Valkyrie Funds back in November. The move to exercise this option showcases the company’s ambition to extend its success beyond dominating the European market into the U.S.
“Our expertise has enabled us to dominate the European market, commanding over 40% of all assets under management in crypto ETPs,” said CEO Jean-Marie Mognetti. The acquisition is expected to add around $110 million to CoinShares’ existing assets under management of $4.5 billion.
The acquisition includes Valkyrie’s Bitcoin and Ether Strategy ETF (BTF) and the Bitcoin Miners ETF (WGMI), marking CoinShares’ expansion in the U.S. market. While the financial terms of the acquisition were not disclosed, the completion is subject to satisfactory due diligence.
This strategic move by CoinShares aligns with positive developments in the U.S. regulatory landscape, notably the SEC’s approval of Valkyrie’s spot Bitcoin ETF. CoinShares initially secured the option to acquire Valkyrie’s crypto unit in November 2023, and the decision to exercise this option reinforces the company’s commitment to expanding its digital asset offerings in the U.S.
Leah Wald, CEO of Valkyrie, expressed optimism about the collaboration, emphasizing that CoinShares’ expertise combined with Valkyrie’s strengths promises to drive them forward in the American digital asset investment sphere, particularly within the digital asset ETF market.
This collaboration mirrors a trend in the industry, where major European crypto investment firms are joining forces with U.S. spot Bitcoin ETF issuers. The recent filing of the ARK 21Shares Bitcoin ETF, a collaboration between ARK Investment Management and Swiss crypto issuer 21Shares, exemplifies the ongoing partnership between European and U.S. entities in the ETF space.
