May 29, 2024
Valkyrie's Bitcoin ETF Approval Spurs CoinShares' Move
Bitcoin News

Firm CoinShares Eyes U.S. Dominance with Valkyrie Funds Acquisition

CoinShares, a European cryptocurrency investment firm, is advancing in its pursuit of acquiring Valkyrie Funds, a U.S. counterpart known for being an issuer of a spot Bitcoin exchange-traded fund (ETF) in the United States. On January 12, CoinShares affirmed the activation of its strategic option to purchase Valkyrie, intensifying its endeavors to penetrate the U.S. market. CoinShares aims to be the leading global investment company specializing in digital assets. “It was only logical for us to expand into the U.S. and join the race for the spot in the Bitcoin ETF,” one of the officials stated.

As per an official statement by CoinShares, the decision to exercise this option directly resulted from the U.S. Securities and Exchange Commission’s approval of Valkyrie’s spot Bitcoin ETF, along with 10 other spot BTC ETFs. Named the Valkyrie Bitcoin Fund, the ETF commenced trading on the Nasdaq on January 11 under the BRRR ticker. On its inaugural trading day, Valkyrie’s BRRR ETF traded approximately $9 million worth of shares, trailing behind industry giants like Grayscale, which handled over $2 billion in such transactions, according to data from Yahoo Finance.

The acquisition is contingent on completing satisfactory due diligence, finalizing necessary legal agreements, and obtaining final company board approval. The announcement specifies that Valkyrie Funds will maintain operational independence until the acquisition is fully executed and finalized. CoinShares initially secured the option to acquire Valkyrie’s crypto unit in November 2023, with the option expected to remain active until March 31.

CoinShares’ advancement in the potential acquisition aligns with positive developments in the U.S. regulatory landscape and the company’s strategy to broaden its digital asset offerings in the U.S. market. CoinShares CEO Jean-Marie Mognetti stated, “Exercising our option to acquire Valkyrie Funds aims at extending our European success in the U.S., offering unparalleled access to regulated digital asset products to American investors.” Valkyrie CEO Leah Wald expressed optimism about the collaboration, highlighting CoinShares’ expertise combined with Valkyrie’s strengths as promising for propelling them forward in the American digital asset investment sphere, particularly within the digital asset ETF market.

The potential collaboration focused on ETFs between Valkyrie and CoinShares mirrors existing partnerships between major European crypto investment firms and spot Bitcoin ETF issuers in the United States. Notably, 21Shares, a prominent issuer of crypto exchange-traded products in Europe, collaborates with ARK Invest in issuing the ARK Invest and 21Shares Bitcoin ETF, which trades under the ticker symbol ARKB on the Cboe exchange.

Image by pixabay

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