CoinShares Seeking to Acquire Valkyrie Crypto Division
CoinShares secured the option to acquire Valkyrie’s crypto unit in November last year. Currently, it is using this option after the listing of Valkyrie spot Bitcoin ETF on Nasdaq.
CoinShares, a European cryptocurrency investment company, is progressing with a possible acquisition of its U.S. rival Valkyrie Funds, a spot Bitcoin exchange-traded fund (ETF) issuer in the nation.
CoinShares Commence Acquisition of Valkyrie
On January 12, the firm confirmed its intention to exercise its strategic option for the Valkyrie acquisition, bolstering its bid to penetrate the United States market. A representative failed to divulge the deal’s terms.
However, a digital media resource noted that CoinShares intends to be the principal international investment firm focusing on digital assets. It was reasonable for the firm to expand into the United States and be part of the race for the Spot Bitcoin exchange-traded fund.
CoinShares’ official statement showed the firm’s decision to use this option as a direct effect of the United States Securities and Exchange Commission (SEC) ratifying Valkyrie’s spot Bitcoin exchange-traded fund and other spot Bitcoin ETFs.
Referred to as the Valkyrie Bitcoin Fund, the exchange-traded fund began trading on January 11 on the Nasdaq under the BRR ticker symbol. Data from Yahoo Finance shows that on the first day of trading, Valkyrie’s BRRR exchange-traded fund traded at approximately $9M worth of shares.
It came after behemoths such as Grayscale that handled more than $2B. This acquisition is awaiting the conclusion of adequate due diligence, the completion of appropriate legal agreements, and ultimate sanctioning by the firm’s board.
CoinShares Reveals Plans to Expand Operations
According to the announcement, Valkyrie Funds will maintain its operational autonomy until the complete execution and finalization of the acquisition. CoinShares secured the alternative to acquire Valkyrie’s crypto unit in November last year.
This option is anticipated to stay active until March 31. The progress of CoinShares in the possible acquisition corresponds to the positive developments in the United regulatory realm and Coinshares’ plan to improve its digital asset offerings in the United States market.
Jean-Marie Mognetti, the chief executive officer, claimed that exercising their option to acquire Valkyrie Funds seeks to improve their European success in the United States, providing unmatched access to regulated digital asset products to U.S. investors.
Similarities Between Valkyrie and CoinShares
Leah Wald, Valkyrie’s chief executive officer, said that a blend of CoinShares’ expertise and Valkyrie’s strengths ‘promise to drive’ them forward in the United States digital asset investment realm, ‘especially within the digital asset exchange-traded fund market.’
The possible ETF-focused partnership between CoinShares and Valkyrie would seem familiar. This is because several major European crypto investment companies have already been collaborating with some spot Bitcoin exchange-traded fund issuers in the U.S.
21Shares, one of Europe’s major crypto exchange-traded products issuers, is an ARK Invest partner in the 21Shares Bitcoin ETF and ARK Invest issuance. This issuer began trading on the Chicago Board Options Exchange (CBOE) under the ARKB ticker.
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