CoinShares to take over Valkyrie now that spot bitcoin ETF is live

Europe-focused CoinShares sets sights on the US crypto fund market after SEC approval of the first spot bitcoin funds

January 12, 2024 08:57 am

Valkyrie Funds CEO Leah Wald | DAS 2022 New York by Blockworks

Europe-focused CoinShares is set to take over the fund division of Valkyrie Investments as part of an expansion following the landmark approval of US spot bitcoin ETFs.

Valkyrie’s spot bitcoin fund was among 10 such ETFs that began trading Thursday — the first investment products of that type cleared by the Securities and Exchange Commission.

Now, crypto-focused investment firm CoinShares has exercised its option to acquire Valkyrie Funds as a direct result of that SEC approval, the company said in a Friday news release.

The move aims at extending the company’s European success in the US, CoinShares CEO Jean-Marie Mognetti said in a statement. CoinShares products hold roughly 40% of the assets in all European crypto exchange-traded products (ETPs), according to the firm.

“This expansion is a clear statement of our appetite for acquisition to support our ambition to be a global leader in the digital asset space,” Mognetti added.

CoinShares said it had secured an option to buy Valkyrie in November. That option was active until March 31, 2024.

Bloomberg Intelligence analyst James Seyffart said in an X post at the time that the deal “would bring CoinShares into the US with a splash.”

The Valkyrie Bitcoin Fund (BRRR) saw day-one trading volumes of roughly 675,000 shares, or $9 million, according to Yahoo Finance data — significantly lower than a number of competing products.

In addition to BRRR, Valkyrie has a bitcoin miners fund and another ETF that holds futures contracts of bitcoin and ether. The three funds have about $110 million in assets under management, which will be added to CoinShares’ roughly $4.5 billion in assets.

“Being part of such a strong and successful group marks a promising new chapter for us,” Valkyrie Funds CEO Leah Wald said in a statement.

The deal, for which specific terms were not disclosed, is pending legal requirements and board approval.

A CoinShares spokesperson did not immediately return a request for comment.

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