European crypto asset management giant CoinShares is quite influential in this growing industry. It is giants like these that invest billions of dollars in the crypto sector. CoinShares oversees more than $3.2B in AUM. It is also publicly listed on the Nasdaq Stockholm and the OTCQX (Nasdaq Stockholm: CS; USOTCQX: CNSRF)
Now, CoinShares has secured an exclusive option to acquire Valkyrie Funds LLC. They are getting ready to dominate the ever-evolving global crypto ETF market. Valkyrie Funds LLC is the American digital asset manager’s investment advisory business.
What is CoinShares’ strategy?
Valkyrie, headquartered in Nashville, specializes in alternative financial services. They aim to provide their investors exposure to the emerging digital asset class through traditional financial instruments.
The option grants CoinShares the exclusive right to purchase 100% of Valkyrie Funds after legal agreements, due diligence and regulatory approvals.
This development comes as CoinShares aims to capitalize on the dawning nature of the market. It all got accelerated by the filing of several crypto spot ETPs in the U.S.. The trend mirrors the one back in Europe since 2015.
The global ETF market is fragmented… This disparity in market evolution presents both challenges and significant opportunities
Jean-Marie Mognetti, CEO of CoinShares.
Accelerating U.S. expansion:
CoinShares has established itself as a leader in the European crypto exchange traded product market. It views the acquisition of Valkyrie as a pivotal step to expansion into the American market. The option will be valid until March 31, 2024, during which Valkyrie will continue to operate independently.
The option to acquire Valkyrie is accelerating our expansion into the U.S. market and the deployment of our digital asset management expertise globally
Jean-Marie Mognetti, CEO of CoinShares.
In Spetember, CoinShares launched a new hedge fund division, CoinShares Hedge Fund Solutions. It was also a part of the company’s plan to expand into the U.S. market.
What is the deal about?
CoinShares and Valkyrie have finalized a brand licensing agreement as part of the acquisition option deal. A revocable global license has been granted Valkyrie Investments to use the “CoinShares” name for its S-1 filings with the SEC.
Leah Wald, CEO of Valkyrie, says this collaboration will “expand high-quality digital asset investment opportunities.” The potential incorporation of the CoinShares name in Valkyrie’s offerings will be notable milestone for CoinShares. They will be able venture into offering mainstream crypto passive products in the U.S. market.
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
Leah Wald, CEO of Valkyrie.
This strategic move not only positions CoinShares as a major player in the U.S. market but also underscores the collaborative spirit between established entities.