The digital management industry saw a landmark move with the announcement that CoinShares International Limited (CoinShares) had managed to secure an option to purchase the ETF business from Valkyrie.
The company is located off the coast of France on an island called Jersey and is the top European investment firm that specializes in digital assets.
As for Valkyrie, it is a digital asset manager in the US, which is based in Nashville, Tennessee. The investment advisory business of the company is renowned for its active management of ETFs.
It is an opportune time for CoinShares to consider stepping into the United States. This is because Valkyrie is one of the numerous companies that has applied for a spot Bitcoin ETF in the country.
Others include VanEck and BlackRock. The company had first submitted the Bitcoin ETF application back in 2021.
The company had seen it application rejected and had then submitted another application in June 2023 for a Valkyrie Bitcoin Fund.
Things are different this time, as there is growing speculation that the US Securities and Exchange Commission (SEC) does not have any more reasons to reject the applications.
According to analysts at JP Morgan, there is a 90% chance of a Bitcoin ETG getting the green light from the SEC before January 10th.
Speaking in a press release, Jean-Marie Mognetti, the CEO of CoinShares, said that their expansion in the US market was accelerating with the option of the Valkyrie acquisition.
The chief executive added that it would give them the room to deploy their expertise in digital asset management globally.
The announcement is undoubtedly a major step in the ongoing expansion of CoinShares into the US market after it had introduced its hedge fund solutions divisions in this year.
Announced back in September, the launch had been the first time that CoinShares had made its funds available to investors in the United States.
The biggest market share of crypto exchange-traded products in Europe belongs to CoinShares, as it oversees more than $3.2 billion.
CoinShares will have the option of acquiring the ETF business from Valkyrie until the end of the first quarter of the next year.
It would give CoinShares the option of purchasing 100% of Valkyrie Funds exclusively from Valkyrie Investments and they would also get the rights associated with Valkyrie Bitcoin Fund and other ETFs not yet launched.
The agreement between the two companies also includes a brand licensing agreement that would permit Valkyrie Investments to use the name ‘CoinShares’ in its S-1 filings during the option period with the SEC.
Leah Wald, the CEO of Valkyrie, said that they would be able to provide investors with groundbreaking products aimed at fulfilling their needs.
They would be able to accomplish this thanks to the global infrastructure and reach that CoinShares has and the established presence of Valkyrie in the US and its existing offerings.
However, the acquisition would be finalized after legal agreements, regulatory approvals, and proper due diligence, with Valkyrie Funds operating independently during this time.