CoinShares Acquires Valkyrie Funds, Boosting US Expansion and Broadening Bitcoin ETF Offerings
Summary:
European digital asset investment firm, CoinShares, has acquired Valkyrie Funds LLC, including the sponsor rights to Valkyrie's Bitcoin ETFs. The deal also includes Valkyrie’s investment advisory business and sponsor rights for the Valkyrie Bitcoin Fund. This acquisition forms part of CoinShares' expansion strategy in the U.S., adding $530 million AUM and broadening its product offerings. After the deal, CoinShares plans to rebrand Valkyrie and its products.
European digital asset investment company, CoinShares, has announced the successful acquisition of Valkyrie Funds LLC, thereby gaining the sponsor rights to Valkyrie's Bitcoin spot exchange-traded funds (ETFs). CoinShares revealed this development on March 12 along with its acquisition of Valkyrie’s investment advisory business, Valkyrie Investments Inc., and sponsorship to the Valkyrie Bitcoin Fund ($BRRR). The purchase price for this deal will be finalized after a three-year earnout period considering Valkyrie’s financial performance. As part of the acquisition, CoinShares will also now oversee Valkyrie's additional ETFs including the Valkyrie Bitcoin and Ether Strategy ETF ($BTF), Valkyrie Bitcoin Miners ETF ($WGMI), and Valkyrie Bitcoin Futures Leveraged Strategy ETF ($BTFX). CoinShares CEO, Jean-Marie Mognetti, highlighted that the acquisition plays a key role in their expansion strategy, especially in the lucrative U.S. market. This merger brings an additional $530 million Assets Under Management (AUM), broadens product range, enhances innovation capacity, and considerably increases CoinShares' total addressable market. With the completion of the acquisition, CoinShares is planning to assimilate Valkyrie and its offerings into its ecosystem. The takeover is in line with CoinShares' aim to enlarge its asset management platform in the U.S. Furthermore, the Bitwise Bitcoin ETF ($BITB) exceeded $2 billion in Bitcoin holdings, becoming the fifth fund to reach this amount. Grayscale’s Bitcoin Trust ETF ($GBTC) leads the market with $29 billion worth of Bitcoin assets under its management. If the current growth rate endures, it is estimated that ETFs will swallow up 8.98% of the BTC supply annually. According to Ki Young Ju, founder and CEO of on-chain analytics platform CryptoQuant, this could result in a "sell-side liquidity crisis" in the next six months, given that institutional inflows continue at their current pace.
Published At
3/12/2024 3:20:41 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.