CoinShares Moves to Acquire Valkyrie Funds for US Market Expansion

The cryptocurrency investment firm CoinShares, which is based in Europe, is making headway with the possibility of acquiring its rival in the United States, Valkyrie Funds.

Valkyrie Funds is also an issuer of a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States. CoinShares confirmed on January 12th that it has exercised its strategic option to purchase Valkyrie, further bolstering the company’s aspirations to enter the US market.

The spokesman mentioned that the company decided to exercise this option as a direct result of the United States Securities and Exchange Commission’s (SEC) approval of Valkyrie’s spot Bitcoin ETF along with ten other spot BTC ETFs.

“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 Bitcoin ETF.”

CoinShares released an official statement stating this. CoinShares released an official statement stating that the Valkyrie Bitcoin Fund, now known as the Bitcoin exchange-traded fund, started trading on the Nasdaq on January 11, 2024, with the ticker code BRRR.

Valkyrie’s BRRR ETF moved only $9 million worth of shares on its first day of trading, which was far lower than the number of shares traded by giants such as Grayscale, which handled more than $2 billion in such deals in a single day, according to data received from Yahoo Finance.

The acquisition is contingent upon the completion of sufficient due diligence, the finalization of any necessary legal agreements, and the approval of the company board in its entirety.

Valkyrie Funds will continue to operate independently until the transaction is fully completed, as stated in the announcement. In November 2023, CoinShares was the first company to secure the option to acquire Valkyrie’s cryptocurrency unit investment.

The option will remain available until March 31, 2024. Considering the good trends in the regulatory landscape of the United States and CoinShares’ plan to extend its digital asset offerings in the United States market, the progress that CoinShares has made in the potential acquisition of Valkyrie is in line with these developments.

Jean-Marie Mognetti, the Chief Executive Officer of CoinShares, stated that the company intends to “extend our European success in the United States by exercising our option to acquire Valkyrie Funds.”

This would provide American investors with unrivaled access to regulated digital asset products.

The Chief Executive Officer of Valkyrie, Leah Wald, observed that the combination of CoinShares’ knowledge and Valkyrie’s strengths “promise to propel” them forward in the American digital asset investment sector, “particularly within the digital asset ETF market.”

Given that certain large European cryptocurrency investment businesses have already been working together with various spot Bitcoin ETF issuers in the United States, a potential collaboration between Valkyrie and CoinShares that focuses on exchange-traded funds (ETFs) would appear to be more familiar than it is.

ARK Invest is a partner of 21Shares, which is one of the largest issuers of cryptocurrency exchange-traded products in Europe.

21Shares is also a partner in the issuance of the ARK Invest and 21Shares Bitcoin ETF, which began trading on the Cboe platform under the ticker symbol ARKB.