Valkyrie’s Spot Bitcoin ETF, the third-lowest performing spot Bitcoin ETF by volume among the 11 spot Bitcoin ETFs launched on Thursday, recorded less than $9 million in volume for the day.
CoinShares International Limited, a leader in the European digital asset industry, today announced that it has exercised its option to acquire Valkyrie Funds. This strategic move follows the U.S. Securities and Exchange Commission’s (SEC) approval of the Valkyrie Spot Bitcoin ETF, which began trading on Nasdaq on January 11.
CoinShares expands presence in the U.S.
This acquisition is consistent with CoinShares’ commitment to expand its digital asset offerings in the U.S. market by leveraging positive developments in the regulatory ecosystem. The SEC’s approval of Valkyrie’s Bitcoin ETF is an important step in the maturation of the U.S. Bitcoin market.
Jean-Marie Mognetti, CEO of CoinShares, emphasized the importance of this move:
“Exercising our option to acquire Valkyrie Funds aims to expand Europe’s success in the US and provide US investors with unparalleled access to regulated digital asset products. “This expansion is a clear expression of our commitment to acquisitions to support our ambition to become a global leader in digital assets.”
Upon completion of the acquisition, CoinShares expects to increase its existing assets under management (AUM) by approximately $110 million, which currently stands at $4.5 billion. The increase is due to Valkyrie’s existing ETF products, including the Valkyrie Bitcoin Fund (BRRR), Valkyrie Bitcoin and Ether Strategy ETF (BTF), and Valkyrie Bitcoin Miners ETF (WGMI).
Despite being the third-worst performer by volume among the 11 spot Bitcoin ETFs launched on Thursday, Valkyrie’s Spot Bitcoin ETF recorded just under $9 million in volume for the day. This figure pales in comparison to BlackRock’s $1 billion and Grayscale Bitcoin Trust’s $2.27 billion. Nonetheless, CoinShares’ strategic move demonstrates confidence in the potential for growth and success of the Valkyrie product.
Leah Wald, CEO of Valkyrie Funds, agreed with Mognetti and expressed her excitement about working with CoinShares. She said:
“CoinShares has established itself as a leading player in the digital asset space, and we are excited to see how they continue to advance the space by leveraging Valkyrie’s team and expertise.”
It is worth noting that the acquisition is still in the final stages of finalization, awaiting satisfactory due diligence, necessary legal agreements and approval by the boards of directors of both companies. While the acquisition is pending, Valkyrie Funds will maintain operational independence until the process is fully executed and finalized.
Bitcoin ETFs in Europe and other markets
CoinShares’ strategic move comes at a time when Europe has already witnessed the launch of spot cryptocurrency exchange-traded products and the first spot Bitcoin ETF finally debuting in July 2023. European markets are an example for London-based Jacobi Asset Management. Euronext Amsterdam’s Bitcoin ETF shows potential for further global expansion in the digital asset space.
In addition to European markets, Bitcoin ETFs have also appeared in other countries such as Canada, Germany, and Brazil, highlighting the global embrace of the nascent asset class.
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