CoinShares tees up potential buy of Valkyrie’s crypto ETF wing
The agreement gives CoinShares the opportunity to expand its influence in the US digital asset market, with the option to acquire Valkyrie’s investment advisory business
Valkyrie Funds and Gellax/Shutterstock modified by Blockworks
CoinShares has secured an “exclusive option to acquire Valkyrie Funds,” the asset manager’s investment advisory business centered on crypto ETFs.
The deal was announced through a press statement on Thursday.
Additionally, CoinShares and Valkyrie have entered into a brand licensing agreement for Valkyrie’s products. This agreement means that Valkyrie has permission to use the CoinShares name for specific products and regulatory filings; most notably its pending Bitcoin spot ETF.
“Throughout the option period, Valkyrie Investments is granted a limited, revocable global license to use the “CoinShares” name for its S-1 filings with the SEC. Should the SEC approve the Valkyrie Bitcoin Fund, Valkyrie Investments plans to incorporate the CoinShares name, signifying CoinShares’ first venture into offering a mainstream crypto passive product in the U.S. market,” the press release said.
The option to acquire is active from Nov. 16 to March 31, 2024.
Until that time, “Valkyrie will continue to operate as an independent entity until CoinShares decides to exercise its option.”
“The global ETF market is fragmented. The establishment of crypto spot ETPs in Europe since 2015, a development about to be mirrored in the U.S., is the perfect illustration,” Jean-Marie Mognetti, CEO of CoinShares said.
“This disparity in market evolution presents both challenges and significant opportunities. The option to acquire Valkyrie is accelerating our expansion into the U.S. market and the deployment of our digital asset management expertise globally.”
“Valkyrie is enthusiastic about this strategic development with CoinShares. Joining forces with CoinShares, a leader in digital asset investments, enables us to expand our reach and enhance our offerings. We are excited about the opportunities this partnership presents, not only for our team but also for our clients,” Valkyrie CEO Leah Wald told Blockworks in an email.
“This move aligns perfectly with Valkyrie’s vision of driving growth and innovation in the digital asset market.”
Bloomberg analyst James Seyffart noted that the deal “would bring Coinshares into US with a splash.”
Valkyrie is one of many companies vying for a spot bitcoin ETF, alongside Franklin Templeton and BlackRock.
The SEC has not decided whether to greenlight a spot bitcoin ETF or deny the pending applications. The regulator has, however, issued multiple delays, including a decision on Hashdex’s spot bitcoin ETF application earlier this week.
Updated Nov. 16, 2023 at 10:43 am ET: Added comment from Valkyrie CEO Leah Wald.
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