CoinShares acquires Valkyrie ETF for $530 million to strengthen its U.S. market presence

CoinShares has integrated Valkyrie into its ecosystem. Both teams are working together to ensure a smooth transition and maintain the high quality of currently existing products.

CoinShares, a major European digital asset investment company, successfully acquired Valkyrie Funds LLC, the investment consulting arm of Valkyrie Investments Inc in the United States, on March 12, 2024, further consolidating its leading position in the U.S. market. This strategic move not only increased CoinShares’ global assets under management (AUM) to $7.3 billion, but also brought the company up to $530 million in asset growth. This acquisition will lay a solid foundation for CoinShares' development in the field of digital assets and further expand its influence in the global market.

This purchase is not a temporary decision. CoinShares obtained an option to acquire Valkyrie back in November 2023, and later exercised this option in January 2024 after Valkyrie successfully launched a Bitcoin ETF. CoinShares’ strategic move demonstrates their interest in acquiring existing companies and advancing new technologies in the digital asset space.

The Valkyrie Bitcoin Fund is a spot-backed Bitcoin ETF and is the Bitcoin ETF with the highest market value in the U.S. Its "sponsor rights" were owned by CoinShares with the acquisition of Valkyrie. The acquisition provides CoinShares with the means to further expand its digital asset expertise in the United States while adding $530 million in assets under management from BTF, WGMI, BRRR and BTFX.

CoinShares accelerates U.S. expansion with acquisition of Valkyrie

CoinShares CEO Jean-Marie Mognetti emphasized the strategic importance of the transaction and pointed out that it is an important milestone in the company’s development plan, especially highlighting the development strategy in the US market.

Jean-Marie said, “The acquisition of Valkyrie is another step in our growth strategy, this time with a special focus on the US market. This acquisition brings an additional $530 million in AUM to CoinShares, making it a strong player from day one. a revenue contributor. More importantly, it expands our product range, enhances our innovation capabilities, and expands our total addressable market by 15 times."

CoinShares plans to fully leverage Valkyrie’s ETF infrastructure to create a powerful U.S. asset management platform to meet the changing needs of U.S. investors. Their focus will be on innovative and differentiated products to ensure that they can meet the diverse needs of the market. With their development and experience in hedge fund management and digital asset strategies, CoinShares are confident that they can deliver on their promise. By combining resources and expertise, CoinShares is expected to achieve greater success in the future and provide U.S. investors with more options and promote the development of the digital asset market. Looking to the future, CoinShares' vision is to become a leader in the U.S. asset management field, lead the development of the industry, and create more value for customers.

Their current product portfolio clearly demonstrates their commitment to innovation, highlighted by WGMI (the best-performing non-leveraged ETF across all sectors in 2023) and the recently launched BTFX (2x leveraged) Bitcoin Futures ETF. As such, these products do more than just give investors exposure to digital assets; rather, they provide investors with a range of strategic options.

Valkyrie acquisition boosts CoinShares success

CoinShares is already integrating Valkyrie into its ecosystem. Both teams are working together to ensure a smooth transition and maintain high-quality supply of existing products. Another step in the integration is the rebranding of Valkyrie as part of CoinShares in the summer of 2024, aiming to emphasize the integration of the product and enhance its visibility in the US market.

Valkyrie will be a significant contributor to CoinShares from the outset, with initial AUM inflows of $530 million, but the final total payout amount may be adjusted based on Valkyrie's profitability and financial health over the next three years.

CoinShares’ successful acquisition of Valkyrie demonstrates its determination to become a major player in the U.S. digital asset market. Their focus on innovation and the expertise and infrastructure Valkyrie brings gives CoinShares an advantage in this rapidly growing market. CoinShares’ product offerings are carefully designed for investor selection, thereby benefiting stakeholders significantly.

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