CoinShares is acquiring U.S. Bitcoin ETF issuer Valkyrie to expand its U.S. market presence and digital asset offerings.
CoinShares, a European digital asset investment firm, has confirmed its decision to acquire Valkyrie Funds, a key player in the United States Bitcoin ETF market. This strategic step, announced on January 12, marks CoinShares’ entry into the U.S. market, bolstering its position in the global digital asset investment landscape.
Initially securing an option in November 2023 to acquire Valkyrie’s cryptocurrency unit, CoinShares exercised this option following the U.S. Securities and Exchange Commission’s (SEC) recent approval of Valkyrie’s spot Bitcoin ETF. This move aligns with CoinShares’ long-term vision to become a leading global investment company specializing in digital assets. The firm’s decision was catalyzed by the successful listing of Valkyrie’s Bitcoin ETF on Nasdaq, which commenced trading on January 11, 2024, under the ticker symbol BRRR.
Valkyrie’s BRRR ETF’s debut saw it trading approximately $9 million worth of shares. While this figure trails behind industry giants like Grayscale, which recorded over $2 billion in similar trades in a day, it signifies a promising start in a competitive market. Data from Yahoo Finance provides insights into these trading volumes.
CoinShares and Valkyrie Partnership
The process of acquisition is currently in an advanced stage, pending satisfactory due diligence, finalization of necessary legal agreements, and approval from the respective company boards. Until the completion and finalization of the acquisition, Valkyrie Funds will continue to operate independently. CoinShares’ option to acquire Valkyrie’s crypto unit is valid until March 31, 2024, providing a window for finalizing this significant deal.
CoinShares’ move to acquire Valkyrie is a strategic effort to replicate its European success in the U.S. The company seeks to offer American investors unparalleled access to regulated digital asset products, diversifying its portfolio and strengthening its foothold in the market. This acquisition comes at a time when the U.S. regulatory landscape is showing positive developments, making it an opportune moment for CoinShares to expand its digital asset offerings.
The collaboration between CoinShares and Valkyrie could create a formidable presence in the American digital asset investment sphere, particularly within the digital asset ETF market. This potential partnership mirrors the existing cooperation between major European crypto investment firms and U.S. spot Bitcoin ETF issuers. For instance, 21Shares, a leading issuer of crypto exchange-traded products in Europe, partners with ARK Invest in the issuance of the ARK Invest and 21Shares Bitcoin ETF, trading under the ticker symbol ARKB on the Cboe exchange.