CoinShares International Limited announced today that it has exercised its right to acquire Valkyrie Funds LL, a US digital asset manager investment advisory firm specializing in actively managed funds traded on cryptocurrency exchanges, from Valkyrie Investments Inc.
CoinShares’ decision to exercise this option comes as a direct result of the SEC’s approval of the issuance of Valkyrie’s spot Bitcoin ETF, The Valkyrie Bitcoin Fund (BRRR), which began trading on Thursday, January 11, 2024 at 09:30 a.m. .m. ET on Nasdaq as part of the first cohort of issuers for such products in the U.S. This move aligns with positive developments in the U.S. regulatory landscape and CoinShares’ strategy to expand its digital asset offerings in the U.S. market.
Upon completion, the acquisition is expected to boost CoinShares’ existing AUM, currently at $4.5 billion, by approximately $110 million, which is the current level of AUM in Valkyrie’s existing ETF products: The Valkyrie Bitcoin Fund (Nasdaq : BRRR), The Valkyrie Bitcoin and Ether Strategy ETF (Nasdaq: BTF) and The Valkyrie Bitcoin Miners ETF (Nasdaq: WGMI).
The exercise of this option marks a pivotal step in the acquisition process, clearly demonstrating CoinShares’ commitment to the acquisition of Valkyrie Funds. Once completed, this will lead to the immediate integration of Valkyrie’s funds and operations into the CoinShares group.
CoinShares CEO Jean-Marie Mognetti commented on today’s news:
“Since our founding in 2014, CoinShares has consistently led the European digital asset industry, setting benchmarks for transparency and investor protection with its regulated digital asset products. Our expertise has allowed us to dominate the European market, holding over 40% of all assets under management in crypto ETPs. The exercise of our option to acquire Valkyrie Funds aims to extend our European success to the US by offering unparalleled access to regulated digital asset products to US investors. This expansion is a clear statement of our appetite for acquisition to support our ambition to be a global leader in the digital assets space.”
Leah Wald, CEO of Valkyrie Funds, said:
“CoinShares has established itself as a leading player in the digital assets space and we are excited to see how they continue to advance the space by leveraging Valkyrie’s team and expertise. CoinShares’ renowned capabilities and proven success combined with our strengths promise to propel us forward in the US digital asset investment sphere, particularly in the digital asset ETF market. Being part of such a strong and successful team marks a promising new chapter for us.”
The acquisition is pending completion of satisfactory due diligence review, finalization of necessary legal agreements and final approval by the Company’s board of directors. Valkyrie Funds maintains its operational independence until the acquisition is fully executed and finalized.