- CoinShares, a digital asset investment firm, has secured an 18-month option to acquire Valkyrie’s ETF business for $5 million, with an additional $5 million payable if exercised.
- The deal would give CoinShares, a major European digital asset manager, a foothold in the U.S. market as investor optimism grows around crypto ETFs.
- Valkyrie has pioneered crypto ETF launches in the U.S. and the acquisition could happen if the SEC approves a spot bitcoin ETF, which CoinShares has experience to potentially achieve.
CoinShares, a digital asset investment firm, has secured an option to buy Valkyrie’s exchange-traded fund (ETF) unit. This would give CoinShares a foothold in the U.S. as investors become more optimistic about crypto ETFs winning SEC approval.
Details of the Deal
CoinShares announced it has secured an 18-month option to acquire Valkyrie’s ETF business for $5 million.
The option can be exercised at any point until May 2024. If CoinShares does acquire the business, it would pay an additional $5 million to Valkyrie.
Valkyrie launched the Valkyrie Bitcoin Strategy ETF (BTF) in October 2021. This was one of the first bitcoin futures ETFs in the U.S.
Valkyrie founder Leah Wald said the deal provides an “alternative path” to bringing a spot bitcoin ETF to market. She said CoinShares has the regulatory experience to potentially achieve this.
Industry Opinions
Many in the industry see this as a strategic move by CoinShares to gain a foothold in the U.S. market.
CoinShares CEO Jean-Marie Mognetti said Valkyrie’s ETF business would serve as the “perfect launchpad” for CoinShares to enter the U.S. regulated funds market.
Some experts think the acquisition could happen if a spot bitcoin ETF is approved in the U.S.
Background on CoinShares and Valkyrie
CoinShares, based in the UK, is one of the largest digital asset managers in Europe with over $1 billion in assets under management. The firm has been trying to expand in the U.S. market.
Valkyrie, based in Tennessee, has been a pioneer in launching crypto ETFs. In addition to BTF, it launched the Valkyrie Ethereum Strategy ETF in October 2022.
Conclusion
The deal gives CoinShares the option to acquire an established ETF provider in Valkyrie. This would allow CoinShares to gain a foothold in the growing U.S. crypto ETF market if the option is exercised. The acquisition could be a strategic move that hinges on whether the SEC approves a spot bitcoin ETF.
