CoinShares Considering Acquisition of Valkyrie
CoinShares is considering acquiring Valkyrie, a move that would solidify its presence in the U.S. amid the heated cryptocurrency ETF frenzy.
CoinShares is considering acquiring Valkyrie. Photo: Valkyrie Website
Crypto asset manager CoinShares has announced its intention to purchase 100% of Valkyrie Investments' ETF fund, a key player in the race for Bitcoin Spot ETFs alongside other Wall Street giants.
The deadline for CoinShares to finalize the acquisition of Valkyrie Fund is by the end of Q1 2024. As of now, CoinShares has not disclosed the amount they have paid for this option nor the details of the deal.
"The option to acquire Valkyrie is accelerating our expansion process in the U.S. market and expanding the CoinShares brand globally," CEO Jean-Marie Mognetti shared in a statement.
While spot ETF products have emerged in Europe, they remain a mystery in the U.S. If Valkyrie joins CoinShares at a time when the U.S. Securities and Exchange Commission (SEC) approves such products, it would not only positively impact the entire crypto market but also benefit CoinShares' reputation.
Valkyrie Funds filed an S-1 application for a Bitcoin spot ETF with the SEC on June 21. According to CoinShares, during the acquisition negotiations, Valkyrie Investments is permitted to use the name "CoinShares" in S-1 filings submitted to the SEC with limited and possible withdrawal terms. If the SEC approves Valkyrie Bitcoin Fund, Valkyrie Investments will use the CoinShares name to mark CoinShares' first crypto product in the U.S. market.
Previously, the SEC "rejected" Valkyrie's Bitcoin spot ETF proposal in 2021. The SEC stated that NYSE Arca, the exchange proposing changes to the listing and trading rules of Valkyrie's product, did not demonstrate compliance with U.S. securities laws. However, not only Valkyrie but also BlackRock, VanEck, Bitwise, WisdomTree, Fidelity, Invesco, ARK Invest, Global X, Hashdex, Franklin Templeton, and Grayscale are all competing in the Bitcoin spot ETF race.
Currently, Valkyrie offers ETFs like Bitcoin Strategy and ETF Bitcoin Miners.
