CoinShares International Limited, a European investment company specializing in digital assets, has secured an option to acquire Valkyrie Funds LLC, the U.S. digital asset manager's investment advisory business known for actively managed cryptocurrency exchange-traded funds (ETF). The option, active until March 31, 2024, allows CoinShares to explore the acquisition of Valkyrie Funds from Valkyrie as exclusive Investments.

CoinShares Expands into U.S. Market with Valkyrie Acquisition Option

CoinShares, with a presence in the European crypto exchange-traded product market, managing over $3.2 billion in assets under management, sees this move as a step toward expanding into the U.S. market. The acquisition option follows the recent launch of CoinShares Hedge Fund Solutions in September 2023.

The CEO, Jean-Marie Mognetti, highlighted the fragmented nature of the global ETF market and sees the option to acquire Valkyrie as a catalyst for accelerating CoinShares' expansion into the U.S., leveraging Valkyrie Fund's understanding of the market and expertise in developing crypto investment products.

As part of the deal, CoinShares and Valkyrie Investments have finalized a brand licensing agreement, allowing Valkyrie to use the "CoinShares" name for SEC filings during the option period. If the SEC approves the Valkyrie Bitcoin Fund, Valkyrie Investments plans to incorporate the CoinShares name, marking CoinShares' entry into offering mainstream crypto passive products in the U.S.

The acquisition option grants CoinShares the exclusive right to purchase 100% of Valkyrie Funds, including associated rights with the Valkyrie Bitcoin Fund and other yet-to-be-launched ETFs held by Valkyrie Investments. The fruition of this acquisition is contingent on regulatory approvals, due diligence, and the completion of legal agreements. Until any potential acquisition is finalized, Valkyrie Funds will maintain to operate independently.

CoinShares, one of Europe’s largest cryptocurrency asset managers, has secured the option to acquire funds from competitor Valkyrie in what would be a melding of two digital-asset-centric firms that focus on exchange-traded products https://t.co/yhCy6DtU3H

— Bloomberg Crypto (@crypto) November 16, 2023

CoinShares Q2 Financial Report: Presence in Germany and Switzerland

Finance Magnates reported earlier that CoinShares International Limited had reported financial performance for Q2 2023. The company's revenue for the quarter rose £5 million to £20.3 million compared to the same quarter in 2022, marking a growth of 33% quarter-on-quarter.

The adjusted EBITDA for the quarter reached £12.8 million, marking the best quarter in over a year for CoinShares. The comprehensive income for the quarter amounted to £5.3 million, a significant improvement from the previous year's loss of £0.6 million.

The Passive Asset Management division played a crucial role, generating £10.6 million in management fees during the quarter. CoinShares expanded its outreach in Germany and Switzerland through targeted events, educating potential investors about cryptocurrencies and Exchange-Traded Products.

The Capital Markets division reported gains and other income of £10 million in Q2, effectively balancing the impact of BTC and ETH price fluctuations on liquidity provisioning income.

Mognetti emphasized the ongoing convergence between traditional and digital finance, citing the company's ability to capitalize on this trend. The results suggest a growing institutionalization of the cryptocurrency industry, attracting more professional investors.

Earlier, the company made strategic investments in FlowBank and acquired Napoleon Asset Management, positioning itself as the second-largest provider of cryptocurrency-based instruments in the industry, with assets under management totaling $1.8 billion.