CoinShares poised to enter U.S. market through Valkyrie ETF acquisition deal

CoinShares, one of Europe’s largest asset managers, “has secured an exclusive option” to acquire Valkyrie’s crypto-focused exchange-traded funds (ETF) by March 31, 2024, according to a Nov. 16 statement.

The statement reads:

“The option grants CoinShares the exclusive right to purchase 100% of Valkyrie Funds from Valkyrie Investments, as well as all of Valkyrie Investments’ associated rights with the Valkyrie Bitcoin (BTC) Fund and any other unlaunched ETFs currently held by Valkyrie Investments.”

As part of the deal, CoinShares and Valkyrie have agreed to a brand licensing agreement that would see Valkyrie’s products, like its pending Bitcoin spot ETF application, use the CoinShares name for regulatory filings with the U.S. Securities and Exchange Commission (SEC).

Under the agreement, Valkyrie Investments has obtained a restricted, terminable global license to utilize the ‘CoinShares’ trademark for its S-1 submissions to the SEC. If the SEC gives the green light to the Valkyrie Bitcoin Fund, the plan is for Valkyrie Investments to integrate the CoinShares brand. This move would represent CoinShares’ initial step in providing a mainstream passive cryptocurrency product in the U.S. market.

Jean-Marie Mognetti, CoinShares CEO, said the deal accelerates the firm’s expansion into the U.S. market, adding that:

“The option to acquire Valkyrie is accelerating our expansion into the U.S. market and the deployment of our digital asset management expertise globally. Valkyrie Fund’s deep understanding of the U.S. market and track record of developing investment products for crypto exposure aligns perfectly with our vision and operational ethos.”

Meanwhile, pending the completion of the deal, Valkyrie Funds will continue to operate as an independent entity. The deal is still subject to “regulatory approvals and consents, satisfactory due diligence, and the completion of requisite legal agreements.”

CoinShares is one of the most prominent European crypto exchange-traded product market players, with more than $3 billion in assets under management.