CoinShares Acquires Valkyrie Funds, Gains Sponsor Rights for Bitcoin ETFs

• CoinShares now gets the sponsor rights to Valkyrie Funds’ spot Bitcoin ETFs.
• The firm is extending its asset management platform’s reach in the U.S.

A European digital asset investment business, CoinShares, recently concluded acquiring Valkyrie Funds. As part of the deal, CoinShares now gets the sponsor rights to Valkyrie Funds’ spot Bitcoin ETFs.

According to CoinShares’ announcement on March 12, the acquisition includes the firm’s financial advising company, Valkyrie Investments, as well as the sponsor rights for its physically-backed Bitcoin (BTC) ETF, the Valkyrie Bitcoin Fund.

Special Focus on the U.S

Following a three-year earnout term, which is contingent upon Valkyrie’s financial performance, the purchase price will be finalized. As a result of the acquisition, CoinShares will now oversee all of Valkyrie’s exchange-traded funds (ETFs), including the Bitcoin and Ether Strategy ETF, the Bitcoin Miners ETF, and the Bitcoin Futures Leveraged Strategy ETF. The U.S market is crucial for international asset managers, says CoinShares CEO Jean-Marie Mognetti.

Mognetti stated:

“The Valkyrie acquisition is yet another step in our growth strategy with a special focus this time in the U.S. This acquisition brings an additional $530 million AUM to CoinShares, which makes it a top-line contributor from day one. More importantly, it broadens our product offerings, strengthens our innovation capacity, and increases by a factor of 15 our total addressable market.”

After acquiring Valkyrie, CoinShares will begin rebranding the company and its products inside its own ecosystem. Since November 2023, CoinShares has had the option to buy Valkyrie. With this purchase, CoinShares is extending its asset management platform’s reach in the U.S.

The approval of spot bitcoin ETFs in the U.S earlier this year sent the price of bitcoin soaring by almost 230% from its value a year ago. Additionally, last week saw the highest number of bitcoin transactions in 18 months.

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