CoinShares Acquires Valkyrie ETF Business, Expanding U.S. Footprint
Rebeca Moen Mar 12, 2024 13:09
CoinShares completes its strategic acquisition of Valkyrie ETF Business, enhancing its U.S. market presence and increasing global AUM.
CoinShares, a leading European investment firm specializing in digital assets, has announced the completion of its strategic acquisition of Valkyrie Funds LLC, an investment advisory business of Valkyrie Investments Inc., and the Sponsor rights to the Valkyrie Bitcoin Fund, a physically-backed Bitcoin ETF. This acquisition is a significant leap in CoinShares' U.S. expansion strategy, increasing its global assets under management (AUM) to approximately $7.3 billion as of March 11, 2024.
The acquisition follows CoinShares' entry into an agreement in November 2023, granting the company an exclusive option to acquire Valkyrie. This move was cemented following Valkyrie Investments' successful launch of the Valkyrie Bitcoin Fund in January 2024. The addition of Valkyrie's $530 million AUM bolsters CoinShares' position in the market, marking the company as a top contributor from day one.
CoinShares plans to rebrand Valkyrie as its U.S. asset management platform, focusing on innovative products that differentiate itself in the market. Valkyrie's existing regulatory licenses complement CoinShares' U.S. permissions, laying a solid foundation for the expansion of its asset management plan in the U.S. The company aims to offer forward-looking thematic asset management, leveraging the success of unique thematic products such as $WGMI — the highest-performing non-leveraged ETF in 2023 across all sectors — and the newly introduced $BTFX, a 2x leveraged bitcoin futures ETF.
Jean-Marie Mognetti, CEO of CoinShares, remarked on the acquisition, emphasizing the U.S. as a critical market for any asset manager. He noted that the acquisition not only adds significant AUM but also broadens product offerings, strengthens innovation capacity, and increases the total addressable market by a factor of 15.
Frank Spiteri, Head of Asset Management at CoinShares, highlighted the company's consistent demonstration of trust and reliability with its crypto products and services since 2014. He reaffirmed CoinShares' commitment to serving as both leaders and educators in the crypto space, supported by a seasoned research team and innovative solutions.
As part of the acquisition, CoinShares has initiated the process of seamlessly blending Valkyrie into its portfolio of brands. This strategic integration is expected to be finalized by the summer, unifying the product lineup across the entire CoinShares ecosystem and reinforcing brand consistency and awareness in the U.S.
The final purchase price of the acquisition will be settled at the end of a three-year earnout period and is dependent on the financial results of the acquired business. Technical details of the acquisition include customary vendor and purchaser representations signed on March 12, 2024.
CoinShares continues to solidify its reputation within the digital assets market, focusing on delivering a broad range of financial services across investment management, trading, and securities. With its expansion into the U.S. market, CoinShares is poised to deliver significant value to its stakeholders, including corporations, financial institutions, and individuals.
As the digital asset landscape evolves, CoinShares' acquisition of Valkyrie ETF Business represents a pivotal point in the company's growth strategy, signaling a stronger global presence and a deepened commitment to product innovation and market differentiation.
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