CoinShares Moves to Acquire US Competitor Valkyrie Funds in Pursuit of US Market Expansion
Summary:
European digital asset investment firm CoinShares has confirmed its intent to acquire US rival Valkyrie Funds, a spot Bitcoin exchange-traded fund (ETF) issuer. The decision is part of CoinShares' plan to increase its presence in the US market. The completion of the takeover is contingent upon successful due diligence, legal arrangements, and board approval. CoinShares' CEO Jean-Marie Mognetti stated that the acquisition aims to extend the company's European success to the US, offering regulated digital asset products to American investors.
The European digital currency investment company, CoinShares, is making headway in its quest to acquire its US-based rival Valkyrie Funds, a notable provider of a spot Bitcoin (BTC) exchange-traded fund (ETF) in the US. On January 12, CoinShares publicly stated its intention to take over Valkyrie as part of its plan to establish a footprint in the US market. CoinShares spokesperson chose not to share the specifics of the deal with Cointelegraph, yet emphasized that CoinShares intends to become the dominant global investment firm in the digital asset sector. It was a logical step, therefore, to venture into the US and compete for the spot Bitcoin ETF. The press release from CoinShares disclosed that the decision to proceed with the option was spurred by the US Securities and Exchange Commission's (SEC) authorization of Valkyrie's spot Bitcoin ETF, along with ten other spot BTC ETFs. The Valkyrie Bitcoin Fund commenced trading on January 11, 2024 on Nasdaq under the ticker symbol BRRR.
On its opening day of trading, Valkyrie’s BRRR ETF exchanged around $9 million in shares, trailing industry heavyweights such as Grayscale, which manages over $2 billion in daily trades, based on figures from Yahoo Finance.
The completion of the acquisition is contingent upon successful due diligence, the finalization of appropriate legal contracts, and ultimate approval from the company board. Valkyrie Funds intends to maintain its operational autonomy until everything about the acquisition is fully implemented. CoinShares initially acquired the prospective to buy Valkyrie's crypto division in November 2023, with the option remaining open until March 31, 2024.
CoinShares' progress in potentially acquiring Valkyrie reflects promising shifts in the US regulatory landscape and CoinShares' aim to enhance its digital asset options in the US market. CoinShares CEO Jean-Marie Mognetti stated, “Our move to acquire Valkyrie Funds is targeted at extending our success from Europe to the US, offering unprecedented access to regulated digital asset products to American investors."
Valkyrie CEO Leah Wald highlighted that merging CoinShares' expertise with Valkyrie’s assets has the potentials to significantly advance their position in the US digital asset investment industry, especially in the digital asset ETF market. A prospective ETF-related collaboration between Valkyrie and CoinShares may bear resemblance to arrangements seen in Europe, where leading crypto investment firms have already partnered with some spot Bitcoin ETF providers in the US. Significant European crypto ETP provider 21Shares, for instance, collaborates with ARK Invest in the issuance of the ARK Invest and 21Shares Bitcoin ETF, which trades under the ticker symbol ARKB on the Cboe exchange.
Published At
1/12/2024 5:24:03 PM
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