CoinShares eyes Valkyrie acquisition after SEC approves latter's spot Bitcoin ETF

• CoinShares has revealed plans to acquire Valkyrie Funds, one of the contenders in the recently completed spot BTC ETF race.
• The move demonstrates interest by the European heavyweight to tap into the digital asset scene in the US.
• CoinShares has multiple crypto ETPs in the EU, making the decision a strategic move to enlarge its geography.
• The acquisition is pending the completion of satisfactory due diligence, legal agreements and final board approval.

After the landmark decision to approve all spot Bitcoin exchange-traded funds (ETFs), the US has opened itself up to global M&A interest, particularly for players in the digital asset space. This comes after numerous headlines vilified the US for its unfavorable regulatory climate.

Following the positive development in the country’s regulatory landscape, CoinShares has developed an interest in expanding its digital asset offerings in the US market. Valkyrie Funds appears to be its foremost target at present.

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CoinShares deliberates on Valkyrie acquisition

European investment firm CoinShares, which already owns digital asset funds, has revealed interest in acquiring Valkyrie Funds, a move that would elevate the acquirer’s heft by a little over $100 million from a current base of $4.5 billion AUM (assets under management). Valkyrie’s AUM is about $110 million at present, comprising various exchange-traded products (ETPs), including:

• The Valkyrie Bitcoin Fund, which trades on NASDAQ under the BRRR ticker
• The Valkyrie Bitcoin and Ether Strategy ETF, trading on NASDAQ under the BTF ticker
• The Valkyrie Bitcoin Miners ETF, trading on NASDAQ under the WGMI ticker symbol

The move is inspired by the decision on Wednesday of the US Securities & Exchange Commission (SEC) to approve the Valkyrie Bitcoin Fund (BRRR), the investment firm’s spot BTC ETF.

Drawn to the positive development in the US regulatory climate, CoinShares is leveraging the opportunity to expand its digital asset offerings in the US market. CoinShares CEO, Jean-Marie Mognetti, addressed the acquisition in a statement: “Exercising our option to acquire Valkyrie Funds aims at extending our European success in the US”.

Completion of the exercise would see Valkyrie’s funds and operations integrated into the CoinShares group. The prospective acquisition is in the due diligence stage, running concurrently with legal procedures before being presented to the CoinShares board for approval. Until then, Valkyrie will maintain its operational independence. The firm’s spot BTC ETF trading volumes hit $1.32 million on Coinbase exchange on Friday, Blockworks BTC ETF tracker shows. 

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