European digital asset management firm, CoinShares, has obtained the exclusive rights to purchase the exchange-traded fund (ETF) unit of its U.S. competitor, Valkyrie Investments. The deal encompasses the Valkyrie Bitcoin Fund, which is currently awaiting regulatory approval in the U.S.
CoinShares announced the move on Thursday, November 17, as a strategy to extend its reach to the U.S markets, which are expected to become a hotspot for ETF offerings. Jean-Marie Mognetti, CEO of CoinShares, expressed hopes that acquiring Valkyrie will allow the firm to take full advantage of the global ETF market, which he described as fragmented.
The buying option will remain active until March 31, 2024, with Valkyrie Funds continuing to operate independently until CoinShares finalizes the acquisition. The two firms have also agreed on a brand licensing term under which the CoinShares name would be used in future S-1 filings to the Securities and Exchange Commission.
If the SEC approves the Valkyrie Bitcoin Fund, Valkyrie plans to incorporate the CoinShares name into the ETF. Valkyrie, along with BlackRock and other financial firms, filed for the spot Bitcoin ETF on June 21. CoinShares, which manages over $3.2 billion in assets, has previously expressed its optimism towards the U.S. cryptocurrency ETF market.
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