CoinShares, a prominent European digital asset management firm, has strategically positioned itself to expand into the U.S. market by securing an exclusive option to acquire the exchange-traded fund (ETF) unit of Valkyrie Investments. This acquisition includes the Valkyrie Bitcoin Fund, which is currently pending approval in the U.S. The announcement on November 17 indicates CoinShares’ ambitions to tap into the burgeoning U.S. ETF market, which is poised to become a pivotal arena for ETF offerings.
Jean-Marie Mognetti, CEO of CoinShares, expressed that the potential acquisition of Valkyrie’s ETF unit aligns with the firm’s goal to leverage the fragmented global ETF market. He noted the disparity in market evolution between Europe and the U.S., seeing it as an opportunity for CoinShares to bridge the gap and capitalize on the emerging trends. “The establishment of crypto spot ETPs in Europe since 2015, a development about to be mirrored in the U.S., is the perfect illustration,” Mognetti stated, highlighting the potential for growth and integration of similar products in the U.S. market.
The option for acquisition remains valid until March 31, 2024, during which Valkyrie Funds will continue its independent operations. The agreement also includes a brand licensing term, allowing the CoinShares brand to be used in future S-1 filings to the Securities and Exchange Commission (SEC). This move is significant as it prepares the ground for incorporating the CoinShares name in the ETF upon its potential approval by the SEC.
Valkyrie, which filed for the spot Bitcoin ETF on June 21 alongside BlackRock and several other financial entities, is awaiting the SEC’s nod. The approval of Valkyrie’s Bitcoin ETF could mark a significant milestone in the U.S. ETF market, particularly for cryptocurrency-based products.
CoinShares, with over $3.2 billion in assets under management, has expressed confidence in the U.S. cryptocurrency ETF market. In September, the firm conveyed optimism about the U.S. not lagging in digital asset regulation and its potential role in the sector’s growth. This latest move to acquire Valkyrie’s ETF unit underlines CoinShares’ strategic efforts to expand its footprint in the global ETF market and solidify its position as a key player in the digital asset management space.