Now that the spot bitcoin ETF is available, CoinShares will replace Valkyrie.

Now that the spot bitcoin ETF is available, CoinShares will replace Valkyrie.

Jan 12 Tech Standard

Centered on Europe CoinShares plans to acquire Valkyrie Investments' fund division as part of an expansion that follows the historic approval of US spot bitcoin ETFs. 

Valkyrie’s spot bitcoin fund was among 10 such ETFs that began trading Thursday — the first investment products of that type allowed by the Securities and Exchange Commission.

As a direct result of the SEC approval, cryptocurrency-focused investment firm CoinShares has now exercised its option to purchase Valkyrie Funds, the business announced in a news release on Friday.

According to a statement from CoinShares CEO Jean-Marie Mognetti, the action is intended to expand the business's European success in the US. CoinShares products contain about 40% of the assets in all European crypto exchange-traded products (ETPs), according to the firm.   

“This expansion is a clear statement of our appetite for acquisition to support our ambition to be a global leader in the digital asset space,” Mognetti added.

CoinShares claimed it had obtained an option to buy Valkyrie in November. That choice remained in effect until March 31, 2024.

At the time, James Seyffart, an analyst with Bloomberg Intelligence, stated in an X post that the deal "would bring CoinShares into the US with a splash."  

According to Yahoo Finance data, the Valkyrie Bitcoin Fund (BRRR) experienced day-one trading volumes of approximately 675,000 shares, or $9 million, which is much less than a number of rival products.

Apart from BRRR, Valkyrie also offers an ETF that holds futures contracts for ether and bitcoin, as well as a fund for bitcoin miners. The approximately $110 million in assets under management for the three funds will be added to the approximately $4.5 billion in assets held by CoinShares. 

"We are excited about the promising new chapter ahead of us as part of such a strong and successful group," said Leah Wald, CEO of Valkyrie Funds, in a statement. 

Specific parameters of the purchase were not disclosed; board approval and regulatory criteria must be met before closing.




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