CoinShares has secured an exclusive option to acquire Valkyrie Funds, including the investment advisory business focused on cryptocurrency ETFs.
This move potentially allows CoinShares to expand its influence in the U.S. digital asset market.
The arrangement also involves a brand licensing agreement, permitting Valkyrie to use the CoinShares name for specific products and regulatory submissions, especially with its pending Bitcoin spot ETF.
Have heard multiple rumors that Valkyrie's fund shop was up for potential sale but this is first i've heard of anything official. Potentially big news for @ValkyrieFunds & @CoinSharesCo. Would Bring Coinshares into US with a splash. They're currently a European crypto ETF issuer https://t.co/tYgxDmMbCJ
— James Seyffart (@JSeyff) November 16, 2023
The acquisition option is effective from November 16 to March 31, 2024. During this period, Valkyrie will continue operating independently until CoinShares decides to exercise its option.
CoinShares Aims to Make a Strong Market Entrance in the U.S.
The global ETF market, especially those related to the crypto world, experiences fragmentation, and CS aims to capitalize on this opportunity to accelerate its expansion in the U.S. market.
The option to acquire Valkyrie is seen as a strategic move to deploy CoinShares’ expertise in digital asset management worldwide.
The collaboration also includes a licensing agreement allowing Valkyrie to use the CoinShares name for S-1 submissions to the SEC, with the intention to incorporate it if the Valkyrie Bitcoin Fund receives SEC approval. This marks their entry into offering a conventional passive crypto product in the U.S. market.
The partnership is viewed positively by both companies, with Valkyrie expressing enthusiasm to join forces with CoinShares to expand their reach and enhance their offerings.
Looking at the broader picture, this implies a competitive race among various companies, including Valkyrie, for a Bitcoin spot ETF in the U.S., alongside entities like Franklin Templeton and BlackRock.
The SEC has not yet made a decision on approving or denying Bitcoin spot ETF applications, leading to multiple delays and reflecting regulatory uncertainty.
Analysts, like James Seyffart of Bloomberg, believe the agreement could lead them to having a significant presence in the U.S. market.
The exclusive option to acquire Valkyrie Funds provides strategic opportunities in the competitive U.S. digital asset market, especially if the SEC decides to approve Bitcoin ETFs in the near future.
