CoinShares announced that it has exercised the option to acquire Valkyrie Funds LLC, the investment advisory arm of the US digital asset manager Valkyrie Investments Inc., which focuses on actively managed cryptocurrency exchange-traded funds.
The European investment company stated that the decision to exercise the option is a direct response to the US Securities and Exchange Commission’s (SEC) approval of Valkyrie’s spot Bitcoin ETF. dubbed ‘The Valkyrie Bitcoin Fund (BRRR),’ which began trading on January 11th.
According to the official announcement, the latest move aligns with CoinShares’ strategy to expand its digital asset offerings in the US market.
The acquisition is expected to increase CoinShares’ existing Assets Under Management (AUM) of $4.5 billion by approximately $110 million, reflecting the current AUM of Valkyrie’s existing ETF products: The Valkyrie Bitcoin Fund (Nasdaq: BRRR), The Valkyrie Bitcoin and Ether Strategy ETF (Nasdaq: BTF), and The Valkyrie Bitcoin Miners ETF (Nasdaq: WGMI).
Upon completion, this acquisition will involve the integration of Valkyrie’s funds and operations into the CoinShares group. CoinShares CEO Jean-Marie Mognetti said the firm commands over 40% of all assets under management in crypto ETPs in the European market. The exec went on to add,
“Our expertise has enabled us to dominate the European market, commanding over 40% of all assets under management in crypto ETPs. Exercising our option to acquire Valkyrie Funds aims at extending our European success in the US, offering unparalleled access to regulated digital asset products to American investors. This expansion is a clear statement of our appetite for acquisition to support our ambition to be a global leader in the digital asset space.”
The acquisition is awaiting completion of due diligence, legal agreements, and approval from the company’s board. Valkyrie Funds will remain operationally independent until the acquisition is fully completed.
The latest development comes almost two months after CoinShares first announced securing an exclusive option to acquire Valkyrie Funds, which represented the next phase of the digital asset manager’s penetration into the US market.
As reported earlier, the two companies had finalized a brand licensing agreement under the acquisition deal. Valkyrie Investments was granted a limited, revocable global license to utilize the name “CoinShares” specifically for its S-1 filings with the SEC throughout the option period.
Following the development, Valkyrie Funds CEO Leah Wald commented,
“CoinShares’ renowned capabilities and proven success in combination with our strengths promise to propel us forward in the American digital asset investment sphere, particularly within the digital asset ETF market. Being part of such a strong and successful group marks a promising new chapter for us.”