Expanding to the U.S. Market
European digital asset management firm CoinShares has obtained the exclusive option to acquire the exchange-traded fund (ETF) unit of its U.S. competitor Valkyrie Investments. This includes the Valkyrie Bitcoin Fund, which is currently awaiting approval in the United States. The move allows CoinShares to expand its operations to the U.S., which is poised to become a major hub for ETF offerings. CoinShares CEO Jean-Marie Mognetti believes that acquiring Valkyrie will enable the company to take advantage of the fragmented global ETF market.
Opportunities and Challenges
Mognetti stated, "The establishment of crypto spot ETPs in Europe since 2015, a development about to be mirrored in the U.S., is the perfect illustration. This disparity in market evolution presents both challenges and significant opportunities." CoinShares has the option to acquire Valkyrie's ETF unit until March 31, 2024. In the meantime, Valkyrie Funds will continue to operate independently until the acquisition is finalized.
Brand Licensing Agreement
In addition to the acquisition option, CoinShares and Valkyrie have agreed on a brand licensing term. This means that the CoinShares name will be used in future S-1 filings to the Securities and Exchange Commission (SEC), which are used to register securities offerings when companies plan to go public. If the SEC approves the Valkyrie Bitcoin Fund, the ETF will incorporate the CoinShares name.
Positive Outlook on the U.S. Cryptocurrency ETF Market
CoinShares, which manages over $3.2 billion in assets, expressed optimism about the U.S. cryptocurrency ETF market. In September, the firm emphasized that the U.S. is not lagging behind in digital asset regulation.
