CoinShares Secures Exclusive Option for Valkyrie Funds Acquisition

CoinShares has obtained an “exclusive option to acquire Valkyrie Funds,” the asset manager’s cryptocurrency ETF-focused investment advisory business.

The agreement was declared via a press release dated Thursday.

Furthermore, a brand licensing agreement has been established between CoinShares and Valkyrie concerning Valkyrie’s products.

Under this agreement, Valkyrie is granted authorization to utilize the CoinShares name in connection with particular products and regulatory filings, most notably its forthcoming Bitcoin spot ETF.

“Valkyrie Investments is granted a restricted, revocable, worldwide license to utilize the “CoinShares” name in its S-1 filings with the SEC throughout the option period.

“If the SEC approves the Valkyrie Bitcoin Fund, Valkyrie Investments intends to add the CoinShares name to the fund. This would represent the first time CoinShares offers a conventional crypto passive product in the United States,” the press release continued.

The acquisition option is in effect between November 16 and March 31, 2024.

“Valkyrie shall maintain its autonomous operations until CoinShares determines to exercise its option.”

Globally, the ETF market is fragmented. “The impending implementation of crypto spot ETPs in the United States, which has been in place since 2015 in Europe, serves as the ideal illustration,” said CoinShares CEO Jean-Marie Mognetti.

The divergence in market development gives rise to substantial obstacles and advantageous prospects.

“Our option to acquire Valkyrie expedites our global deployment of digital asset management expertise and our penetration of the U.S. market.”

James Seyffart, an analyst at Bloomberg, remarked that the transaction “would flood Coinshares into the United States.”

Valkyrie is among several firms competing with Franklin Templeton and BlackRock for a spot bitcoin ETF.

The SEC has not yet decided on approving or denying pending applications for spot bitcoin ETFs.

However, the regulator has issued numerous postponements, the most recent being a decision earlier this week regarding Hashdex’s application for a spot bitcoin ETF.