CoinShares Completes Acquisition of Valkyrie Bitcoin Funds

CoinShares International Limited has moved a step further in its vision to establish its presence in the United States crypto market with the recent acquisition of Valkyrie Bitcoin ETF. According to the high-profile European investment firm, the acquisition of the investment advisory business of Valkyrie Investments Inc. has been completed. 

The deal gives CoinShares access to Valkyrie’s $530 million of Assets Under Management management (AUM). Consequently, CoinShares AUM is now around $7.3 billion globally. It also gains sponsor rights to the Valkyrie Bitcoin Fund, the physically-backed Bitcoin ETF that was recently launched. 

CoinShares’ Pivot in the U.S. Crypto Market 

The company acknowledged this strategic move as a significant milestone and boost for its expansion in the U.S. market.

The move is pivotal and in alignment with CoinShares’ plan to build a global asset management franchise. Leveraging Valkyrie’s established platform, expertise, and user base are some of the perks of the deal. 

Generally, CoinShares has been shaking things up in the crypto space. Following the United States Securities and Exchange Commission (SEC) approval of spot Bitcoin ETFs in January, CoinShares began to distribute Ethereum (ETH) staking rewards to investors in its exchange-traded product (ETP). 

CoinShares’ Decision to Acquire Valkyrie Bitcoin ETF

Conversations on the acquisition of Valkyrie have been ongoing since last year. In November 2023, CoinShares received an option to acquire the blockchain-based company. However, it wasn’t until January 2024 that CoinShares decided to exercise the option. For the European investment firm, the completion of the deal is an indication of its deep commitment.

“The close of the acquisition enhances CoinShares’ deep commitment to Valkyrie’s growth and success while also promoting the creation of cutting-edge digital asset investment solutions,” CoinShares mentioned in its blog post. 

Next Big Thing for CoinShares 

In the coming days, CoinShares will focus on product innovation and market differentiation while trying to develop the U.S. asset management venture using Valkyrie’s ETF infrastructure. CoinShares plans to put products like the highest-performing non-leveraged ETF in 2023 across all sectors and the newly introduced $BTFX, a 2x leveraged bitcoin futures ETF, as the stars of the show.

Ultimately, the deal will boost CoinShares’ product offering, strengthen its innovative capacity as well as increase its total addressable market. Some Valkyrie employees will join the team at CoinShares.