CoinShares Gobbles up Valkyrie Funds in Post-Bitcoin ETF Feast
Nickie Louise
Posted On January 15, 2024
European crypto giant CoinShares has acquired Valkyrie Funds following the approval of the US spot bitcoin ETF. In an announcement on Friday, CoinShares International said it is acquiring Valkyrie Funds, one of the 11 issuers whose spot Bitcoin ETF received the SEC’s approval.
The move marks a significant expansion for the European digital asset firm in the U.S. This decision comes hot on the heels of Valkyrie’s spot bitcoin exchange-traded fund securing approval from U.S. regulators.
The approval granted by the U.S. regulator covered eleven U.S.-listed ETFs, including Valkyrie’s, tracking the spot price of Bitcoin, the world’s largest cryptocurrency. These ETFs collectively witnessed $4.6 billion in shares trading hands by Thursday, as investors eagerly embraced these landmark products.
With this acquisition, CoinShares is poised to take control of Valkyrie’s ETF offerings, including the recently launched Valkyrie Bitcoin Fund (BRRR). However, the finalization of the deal is contingent on a meticulous due diligence process and obtaining final approvals from both companies’ boards.
As part of the acquisition, CoinShares will also assume management of Valkyrie’s approximately $110 million in assets. These assets are spread across the Valkyrie Bitcoin and Ether Strategy ETF, the Valkyrie Bitcoin Miners ETF, and the recently listed Valkyrie Bitcoin Fund, according to a statement from the company reported by Reuters.
The impact of this acquisition reverberates across the cryptocurrency industry, enhancing CoinShares’ presence in the U.S. market. Beyond expanding their product offerings, this move provides access to Valkyrie’s existing client base, highlighting the ongoing trend of consolidation within the cryptocurrency space as larger entities strategically acquire smaller counterparts.
Following this strategic maneuver, CoinShares experienced a 3.4% dip in its stock price. Analysts attribute this to concerns regarding the acquisition’s cost and potential integration challenges. While some voices in the financial landscape speculate a future merger of Valkyrie into CoinShares, no official decision has been communicated.
Founded in 2018, CoinShares is a significant player in the European cryptocurrency market, managing $4.5 billion in assets through crypto-focused exchange-traded products (ETFs).
