CoinShares International Limited has officially exercised its option to acquire Valkyrie Funds LLC, the US digital asset manager's investment advisory business specializing in actively managed cryptocurrency exchange-traded funds (ETFs). This strategic move follows the recent approval by the US Securities and Exchange Commission for the issuance of Valkyrie's spot Bitcoin ETF, The Valkyrie Bitcoin Fund.

CoinShares Awaits Strengthened AUM through Valkyrie Funds Acquisition

The Valkyrie Bitcoin Fund commenced trading on January 11 at 09:30 am ET on Nasdaq, marking a milestone for the company as part of the first cohort of issuers for such products in the US. CoinShares' decision to acquire Valkyrie Funds aligns with the positive developments in the US regulatory landscape and reflects its strategy to expand its digital asset offerings in the American market.

Upon completion, the acquisition is anticipated to strengthen CoinShares' existing assets under management (AUM) of $4.5 billion by approximately $110 million. This addition represents the current level of AUM within Valkyrie's existing ETF products, including The Valkyrie Bitcoin Fund, The Valkyrie Bitcoin and Ether Strategy ETF, and The Valkyrie Bitcoin Miners ETF.

Jean-Marie Mognetti, the CEO of CoinShares, commented on the development: "Exercising our option to acquire Valkyrie Funds aims at extending our European success in the US, offering unparalleled access to regulated digital asset products to American investors. This expansion is a clear statement of our appetite for acquisition to support our ambition to be a global leader in the digital asset space."

CoinShares exercised an option to buy an exchange-traded funds business from rival Valkyrie, two days after US regulators approved ETFs investing directly in Bitcoin https://t.co/VQtTxu0rUa

— Bloomberg Crypto (@crypto) January 12, 2024

Valkyrie Funds Anticipates Successful Partnership

The exercise of this acquisition option marks a pivotal step in the process, underscoring CoinShares' commitment to incorporating Valkyrie Funds into its portfolio. The integration of Valkyrie's funds and operations into the CoinShares group is expected to enhance the company's position in the American digital asset investment market.

Leah Wald, the CEO of Valkyrie Funds, expressed excitement about the partnership: "CoinShares has established itself as a premier player in the digital asset space, and we're excited to see how they continue advancing the space by leveraging Valkyrie's team and expertise."

The acquisition is pending the completion of satisfactory due diligence, the finalization of necessary legal agreements, and final approval from the CoinShares board. Valkyrie Funds will maintain its operational independence until the acquisition is fully executed and finalized.