CoinShares Exercises Option to Buy Bitcoin ETF Provider Valkyrie to Add U.S. Arm

CoinShares said the decision is a direct result of the SEC's approval for spot bitcoin ETF listings.

AccessTimeIconJan 12, 2024 at 10:57 a.m. UTC
Updated Mar 8, 2024 at 7:52 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Crypto asset manager CoinShares (CS) exercised its option to buy the exchange-traded fund (ETF) unit of Nashville, Tennessee-based Valkyrie Investments, adding a U.S. arm the day after spot bitcoin ETFs debuted in the country.

CoinShares, based in Saint Helier, Jersey, secured the option on Valkyrie Funds in November and said on Friday the decision to exercise it was a direct result of the Securities and Exchange Commission's (SEC) approval of the listing of spot bitcoin ETFs, including Valkyrie's Bitcoin Fund (BRRR).

  • What South Korea's Latest Election Means for Crypto Adoption in the Country
    00:38
    What South Korea's Latest Election Means for Crypto Adoption in the Country
  • Hong Kong Approving an Ether ETF Could Be a 'Surprise,' Analyst Says
    00:52
    Hong Kong Approving an Ether ETF Could Be a 'Surprise,' Analyst Says
  • What South Korea's Elections Mean for Crypto; The Potential for Spot BTC and ETH ETFs in Hong Kong
    19:02
    What South Korea's Elections Mean for Crypto; The Potential for Spot BTC and ETH ETFs in Hong Kong
  • Would You Get Paid in Crypto?
    00:57
    Would You Get Paid in Crypto?
  • The ETFs' debut on Thursday saw $4.6 billion notched up in trading volume, with BRRR accounting for $9.3 million. Bitcoin surged to over $49,000 briefly after the start of trading, then sank as low as $45,700 as the initial euphoria wore off.

    "Our expertise has enabled us to dominate the European market, commanding over 40% of all assets under management in crypto ETPs. Exercising our option to acquire Valkyrie Funds aims at extending our European success in the U.S.," CEO Jean-Marie Mognetti said in a statement.

    The acquisition will add around $110 million to CoinShares' existing assets under management (AUM) of $4.5 billion. As well as the newly approved spot fund, CoinShares gains the Bitcoin and Ether Strategy ETF (BTF) and the Bitcoin Miners ETF (WGMI).

    Financial terms for the acquisition, which is subject to satisfactory due diligence completion, were not disclosed.

    CoinShares' Nasdaq Stockholm-listed shares fell 1.83% to 40.15 Swedish krona ($3.91).

    UPDATE (Jan. 12, 11:23 UTC): Adds the locations of CoinShares and Valkyrie, CS share price, context of bitcoin ETFs' debut, CEO quote.

    Edited by Sheldon Reback.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.