CoinShares exercises option to acquire Valkyrie’s crypto unit
European cryptocurrency investment firm CoinShares is taking steps to acquire Valkyrie Funds, a competitor in the United States market that also offers a spot Bitcoin exchange-traded fund (ETF). CoinShares confirmed on January 12 that it has exercised its strategic option to acquire Valkyrie, as part of its efforts to expand into the U.S. market. While the terms of the deal were not disclosed, a representative for CoinShares stated that the move was a logical step for the company to become a leading global investment company specializing in digital assets.
CoinShares strengthens its foothold in the US market with Valkyrie acquisition
CoinShares’ decision to acquire Valkyrie will further solidify its presence in the U.S. cryptocurrency market. With Valkyrie being an issuer of a spot Bitcoin ETF, CoinShares aims to leverage its expertise and expand its digital asset offerings to American investors. The acquisition is currently pending completion of due diligence, legal agreements, and final board approval. CoinShares had initially secured the option to acquire Valkyrie’s crypto unit in November 2023, and the option is expected to remain active until March 31, 2024.
Valkyrie’s spot Bitcoin ETF approval fuels CoinShares’ acquisition decision
The recent approval of Valkyrie’s spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC) played a significant role in CoinShares’ decision to exercise its option to acquire the company. The approval of Valkyrie’s Bitcoin ETF, called the Valkyrie Bitcoin Fund, along with 10 other spot BTC ETFs, paved the way for CoinShares to enter the U.S. market. The Bitcoin ETF started trading on January 11, 2024, on Nasdaq under the ticker symbol BRRR. CoinShares recognizes the potential of the growing spot Bitcoin ETF market and aims to capitalize on this opportunity through its acquisition of Valkyrie.
Valkyrie’s BRRR ETF lags in trading volume on its first day
On its first day of trading, Valkyrie’s BRRR ETF traded around $9 million worth of shares. While this is a respectable amount, it lags behind industry giants like Grayscale, which handled over $2 billion in spot BTC ETF trades in a single day. Despite this, it is still an encouraging start for Valkyrie, and it remains to be seen how its trading volume will develop in the coming days and weeks.
CoinShares’ potential acquisition of Valkyrie aligns with US regulatory developments
CoinShares’ progress in acquiring Valkyrie is in line with positive developments in the U.S. regulatory landscape. The approval of Valkyrie’s spot Bitcoin ETF, along with other similar products, demonstrates the increasing acceptance and recognition of cryptocurrency investment vehicles by regulatory authorities. CoinShares’ strategic move to acquire Valkyrie reflects the company’s strategy to expand its digital asset offerings and provide regulated investment products to American investors. The synergy between CoinShares and Valkyrie is expected to propel both companies forward in the American digital asset investment sphere, particularly within the digital asset ETF market.
Analyst comment
Positive news: CoinShares exercises its option to acquire Valkyrie’s crypto unit, strengthening its foothold in the US market and expanding its digital asset offerings to American investors. The acquisition aligns with positive regulatory developments and the growing acceptance of cryptocurrency investment vehicles. It is expected to propel both companies forward in the American digital asset ETF market.
