CoinShares, a leading European crypto investment firm, has announced its decision to acquire Valkyrie Funds, a US-based competitor. This move comes shortly after the US Securities and Exchange Commission approved Valkyrie Fund’s application for a spot in Bitcoin ETF, along with ten other issuers, on January 10. The approved ETF, known as Valkyrie Bitcoin Fund (BRRR), began trading on Nasdaq the day following the approval.
In a press statement, CoinShares CEO Jean-Marie Mognetti expressed that the acquisition of Valkyrie Funds is aimed at extending their success in Europe to the US. The goal is to offer American investors unparalleled access to regulated digital asset products. A spokesperson for CoinShares further explained that the planned acquisition and expansion into the US market was a logical step for the Europe-based firm to participate in the current competition for the spot Bitcoin ETF.
However, it’s worth noting that Valkyrie’s BRRR ETF only traded approximately $9 million worth of shares, a figure that is significantly lower compared to other market players such as the Grayscale Bitcoin Trust, which registered over $2.3 billion in volume.
The acquisition is currently pending due diligence, legal agreements, and board approval. Valkyrie will maintain its independence until the deal is finalized, with the completion of the process expected by March 31, 2024.
This move by CoinShares is reflective of similar deals between European crypto firms and US ETF issuers, like the partnership between 21Shares and ARK Invest. As more spot crypto ETFs are launched in the US, it’s anticipated that consolidation between American and European crypto investment firms will continue, capitalizing on the momentum and growing institutional interest.
CoinShares had previously secured the option to purchase Valkyrie’s crypto unit in November 2022. Valkyrie CEO Leah Wald believes that the combination of expertise will help propel them forward in the American digital asset investment sphere, particularly within the digital asset ETF market.
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| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇺🇸 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Jean-Marie Mognetti, Leah Wald |
| Companies | Grayscale Bitcoin Trust, Valkyrie Funds, ARK Invest, CoinShares, Nasdaq, US Securities and Exchange Commission, 21Shares |
| Currencies | Bitcoin |
| Securities | Grayscale Bitcoin Trust, Valkyrie Bitcoin Fund (BRRR) |
