CoinShares International Limited today announced the completion of the acquisition of Valkyrie Funds LLC, the investment advisory business of Valkyrie Investments Inc., as well as the Sponsor rights to the Valkyrie Bitcoin Fund, the physically backed Bitcoin ETF.
With the addition of Valkyrie’s approximately $530 million in assets under management (AUM), CoinShares’ AUM has grown to approximately $7.3 billion worldwide as of March 11, 2024. This pivotal move significantly accelerates CoinShares’ expansion into the USA and is another milestone in the creation of a global asset management franchise.
CoinShares has an option to acquire Valkyrie from November 2023, which it exercised following the launch of the Valkyrie Bitcoin Fund by Valkyrie Investments in January 2024. The closing of the acquisition reinforces CoinShares’ deep commitment to the growth and success of Valkyrie , while promoting the creation of cutting-edge digital asset investment solutions.
Looking ahead, CoinShares plans to use the Valkyrie ETF infrastructure to grow its US asset management business with a clear focus on product innovation and market diversification. The new platform will act as a long-term thematic asset manager for the US market, building on the success of unique thematic products such as $WGMI and the newly introduced $BTFX, a 2x bitcoin futures ETF.
Jean-Marie Mognetti, CEO of CoinShares, commented on the acquisition:
“10 years ago, CoinShares began offering digital asset exposure to European investors through regulated products with a firm commitment to innovation and first-to-market.
The acquisition of Valkyrie is another step in our growth strategy with a special focus this time on the U.S. This acquisition brings an additional $530 million AUM to CoinShares, making it a top contributor from day one. Most importantly, it broadens our product offerings, strengthens our ability to innovate, and increases our total addressable market by 15%.
The US represents a critical market for any asset manager and with a dedicated platform as well as the right product market fit, CoinShares is poised to deliver significant value to its shareholders.
We welcome our colleagues from Valkyrie to the CoinShares team and look forward to their contributions to our journey.”
Following the completion of the acquisition, CoinShares began the process of seamlessly blending Valkyrie into its portfolio of brands, with the two teams working together to ensure a smooth transition and continued excellence in product offerings. Central to this consolidation is the strategic decision to rebrand Valkyrie under the CoinShares umbrella.
This initiative, which is expected to be completed by summer, aims to unify the product line across the entire CoinShares ecosystem, thereby enhancing brand consistency and enhancing brand awareness in the US
On March 12, 2024 CoinShares and Valkyrie Investments Inc. have signed and closed definitive agreements to complete the CoinShares acquisition of Valkyrie Funds LLC, the investment advisory business of the US digital asset manager specializing in actively managed funds traded on cryptocurrency exchanges. The final purchase price, which is settled at the end of a three-year profit period, depends on the financial results of the acquired business.