The deal comes as Bitcoin ETF applications in the U.S. are seemingly inching closer toward regulatory approval.
European digital asset manager CoinShares secured the exclusive option to acquire Valkyrie Funds, the exchange-traded fund (ETF) unit of its United States competitor, Valkyrie Investments, which includes the Valkyrie Bitcoin Fund awaiting U.S. approval.
CoinShares said on Nov. 17 that the move helps it expand to the U.S., which could soon become the epicenter for ETF offerings. The firm’s CEO, Jean-Marie Mognetti, added that he hopes the Valkyrie acquisition will help it capitalize on what is currently a fragmented global ETF market.
“The establishment of crypto spot ETPs in Europe since 2015, a development about to be mirrored in the U.S., is the perfect illustration,” said Mognetti. “This disparity in market evolution presents both challenges and significant opportunities.”
The option will remain active until March 31, 2024. For now, Valkyrie Funds will continue to operate as an independent entity until an acquisition by CoinShares is finalized
The two crypto-centric firms also agreed on a brand licensing term where the CoinShares name would be used in future S-1 filings to the U.S. Securities and Exchange Commission — used to register a securities offering with the regulator when companies plan to go public.
If the SEC approves the Valkyrie Bitcoin Fund, Valkyrie plans to incorporate the CoinShares name into the ETF.
Valkyrie filed for the spot Bitcoin
$34,829 ETF on June 21, along with BlackRock and a host of other financial firms.
CoinShares, which oversees over $3.2 billion in assets under management, expressed its optimism toward the U.S. cryptocurrency ETF market in September and iterated that the economic powerhouse isn’t lagging on digital asset regulation.
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