Digital asset manager CoinShares announced securing an exclusive option to acquire Valkyrie Funds – the exchange-traded fund (ETF) division of Valkyrie Investments. The strategic acquisition option represents the next phase of CoinShares’ penetration into the US market, following the launch of CoinShares Hedge Fund Solutions in September this year.
The option for CoinShares to acquire Valkyrie Funds is currently active and will be in force until March 31, 2024. However, the amount paid by the European asset manager for the option and the potential acquisition costs remain undisclosed.
CoinShares Eyes US Expansion
CoinShares CEO Jean-Marie Mognetti remarked on the development and noted the fragmented nature of the global ETF market. In an official statement, the exec highlighted the establishment of crypto spot ETPs in Europe since 2015, a trend expected to be replicated in the US.
According to Mognetti, this divergence in market evolution poses both challenges and substantial opportunities. The acquisition option for Valkyrie is expected to serve as a catalyst, expediting CoinShares’ expansion into the US market and the broader global deployment of its expertise in digital asset management.
He went on to add,
“Valkyrie Fund’s deep understanding of the U.S. market and track record of developing investment products for crypto exposure aligns perfectly with our vision and operational ethos. CoinShares is looking forward to exploring this acquisition option and bringing, with the know-how of Valkyrie’s founders, premier digital asset products to American investors.”
Under the acquisition option deal, the two companies have finalized a brand licensing agreement. Valkyrie Investments is granted a limited, revocable global license to use the “CoinShares” name for its S-1 filings with the SEC throughout the option period.
If the agency greenlights the Valkyrie Bitcoin Fund, Valkyrie Investments intends to integrate the CoinShares name, marking CoinShares’ first venture into providing a mainstream crypto passive product in the US market. CoinShares also has a special option to buy 100% of Valkyrie Funds and associated rights, including those related to the Valkyrie Bitcoin Fund and other unreleased ETFs from Valkyrie Investments.
However, this can only happen if CoinShares gets regulatory approvals, completes due diligence, and finalizes legal agreements. Until the acquisition is completed, Valkyrie Funds will remain an independent entity.
CoinShares Teams up With OKX and Komainu
The latest development comes days after CoinShares entered into a partnership with OKX and a partnership with custody provider Komainu for institutional segregated asset trading.
The partnership aims to implement a robust legal structure and processes that alleviate counterparty risk while conducting high-volume trading.