In a historic move for the digital asset management industry, CoinShares International Limited (CoinShares) has secured the option to purchase the ETF business of Valkyrie.
Based on the island of Jersey off the coast of France, the firm is a leading European investment firm specializing in digital assets. Valkyrie is an American digital asset manager based in Nashville, Tennessee. Its investment advisory business is best known for its actively managed cryptocurrency exchange-traded funds.
This is an auspicious time for CoinShares to establish its foothold in the US.
Valkyrie is one of several companies, along with BlackRock and VanEck, that have applied to offer a spot Bitcoin ETF in the US. The firm first submitted an application for a Bitcoin ETF in 2021. After being rejected, the company resubmitted an application for its Valkyrie Bitcoin Fund in June 2023.
This time, there is growing fear that the Securities and Exchange Commission has run out of reasons to say no. In fact, JPMorgan analysts believe there is a 90% chance the SEC will approve at least one Bitcoin ETF before January 10.
“The choice to acquire Valkyrie accelerates our expansion into the US market and the deployment of our digital asset management expertise globally,” CoinShares CEO Jean-Marie Moganetti said in a press release.
The announcement marks an important step in CoinShares’ ongoing expansion into the US market, following the launch of its hedge fund solutions division earlier this year. The launch announced in September marked the first time that CoinShares will make its fund available to US investors.
CoinShares has the largest market share of European crypto exchange-traded products, worth more than $3.2 billion. The option to acquire Valkyrie’s ETF business is valid until the end of Q1 2024, giving CoinShares the exclusive right to purchase 100% of the Valkyrie Fund from Valkyrie Investments, as well as rights associated with the Valkyrie Bitcoin Fund and other unlaunched ETFs .
As part of the agreement, the two companies have also finalized a brand licensing that will allow Valkyrie Investments to use the “CoinShares” name in its S-1 filings with the SEC during the option period.
Leah Wald, CEO of Valkyrie, said, “Together, with Valkyrie’s established US presence and existing offerings, coupled with CoinShares’ global reach and infrastructure, we are poised to deliver an unprecedented product aimed at meeting the needs of investors “
The final acquisition is contingent on regulatory approval, satisfactory due diligence and legal agreements, with Valkyrie Fund continuing to operate independently in the interim. This strategic choice places CoinShares at the forefront of combining European expertise with the growing US digital asset market.
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Source: decrypt.co
