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CoinShares Secures Strategic Option to Acquire Valkyrie Funds

CoinShares Secures Strategic Option to Acquire Valkyrie Funds
  • This option to acquire is the latest step in CoinShares’ U.S. expansion, following the launch of Hedge Fund Solutions in September 2023.
  • CoinShares has also entered into a brand licensing agreement for Valkyrie’s products notably its pending Bitcoin spot ETF.
  • Valkyrie will continue to operate as an independent entity until CoinShares decides to exercise its option which remains open until the end of Q1 2024.

CoinShares International Limited (“CoinShares” or “the Company”) , the leading European investment company specialising in digital assets, today announced it has secured an exclusive option to acquire Valkyrie Funds LLC (“Valkyrie Funds”), the U.S. digital asset manager’s investment advisory business specialising in actively managed cryptocurrency exchange traded funds, from Valkyrie Investments Inc. (“Valkyrie Investments”).

CoinShares’ option to acquire Valkyrie Funds from Valkyrie Investments, is active from now until its expiry on 31 March 2024.

CEO of CoinShares, Jean-Marie Mognetti, commented on today’s news: “The global ETF market is fragmented. The establishment of crypto spot ETPs in Europe since 2015, a development about to be mirrored in the U.S., is the perfect illustration. This disparity in market evolution presents both challenges and significant opportunities. The option to acquire Valkyrie is accelerating our expansion into the U.S. market and the deployment of our digital asset management expertise globally.

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Valkyrie Fund’s deep understanding of the U.S. market and track record of developing investment products for crypto exposure aligns perfectly with our vision and operational ethos. CoinShares is looking forward to exploring this acquisition option and bringing, with the know-how of Valkyrie’s founders, premier digital asset products to American investors.”

For the last 10 years, CoinShares has established itself as the leading player within the European crypto exchange traded product market, where it currently commands the largest market share and oversees more than $3.2B in AUM, at the date of this communication. The strategic acquisition option is the next step in CoinShares’ expansion into the U.S. market, following the launch of CoinShares Hedge Fund Solutions in September of 2023.

As part of the acquisition option deal, the two companies have finalised a brand licensing agreement. Throughout the option period, Valkyrie Investments is granted a limited, revocable global licence to use the “CoinShares” name for its S-1 filings with the SEC. Should the SEC approve the Valkyrie Bitcoin Fund, Valkyrie Investments plans to incorporate the CoinShares name, signifying CoinShares’ first venture into offering a mainstream crypto passive product in the U.S. market.

“At the heart of our mission is to expand high-quality digital asset investment opportunities, joining CoinShares through this move underscores this shared ambition and vision”, stated Leah Wald, CEO of Valkyrie. “CoinShares is a recognised, global leader and first-mover in the digital asset investment landscape with exceptional market expertise and an innovative spirit. Together, with Valkyrie’s established U.S. presence and existing offerings, alongside CoinShares global reach and infrastructure, we’re poised to deliver groundbreaking products aimed at solving investors’ needs.”

The option grants CoinShares the exclusive right to purchase 100% of Valkyrie Funds from Valkyrie Investments, as well as all of Valkyrie Investments’ associated rights with the Valkyrie Bitcoin Fund and any other unlaunched ETFs currently held by Valkyrie Investments. CoinShares’ exercise of the acquisition option is contingent on regulatory approvals and consents, satisfactory due diligence and the completion of requisite legal agreements. Valkyrie Funds will continue to operate as an independent entity until any potential acquisition by CoinShares is finalised and the transaction is executed.

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