Breaking: CoinShares Acquires Valkyrie Bitcoin ETF To Strengthen US Presence

In a strategic move aimed at bolstering its foothold in the U.S. digital asset market, CoinShares International Limited, a leading European digital asset management firm, has announced its acquisition of Valkyrie Funds LLC, along with the Sponsor rights to the Valkyrie Bitcoin Fund, a physically-backed Bitcoin ETF. Notably, this acquisition marks a significant milestone in the firm’s expansion strategy, leveraging Valkyrie’s regulatory licenses and innovative product offerings to enhance its presence in the United States.

CoinShares Acquires Valkyrie Bitcoin ETF Business

CoinShares International Limited (CS), renowned for its expertise in digital assets, has completed the acquisition of Valkyrie Funds LLC, solidifying its commitment to the U.S. market. With approximately $530 million in assets under management (AUM) from Valkyrie, CoinShares’ global AUM now stands at approximately $7.3 billion as of March 11, 2024.

Notably, this strategic move, as announced by CoinShares, aligns with the firm’s vision of becoming a dominant player in the U.S. digital asset landscape by leveraging Valkyrie’s established platform and expertise.

Meanwhile, the acquisition follows an exclusive option agreement between CoinShares and Valkyrie in January 2024. The agreement allowed the firm to acquire Valkyrie’s investment advisory business and Sponsor rights to the Valkyrie Bitcoin Fund.

These regulatory licenses complement the digital asset investment firm’s existing U.S. permissions, laying a robust foundation for CoinShares’ asset management expansion plan in the United States.

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What’s Next?

Commenting on the recent acquisition, Jean-Marie Mognetti, CEO of CoinShares, expressed enthusiasm about the acquisition, emphasizing its transformative impact on CoinShares’ growth strategy. Besides, he highlighted the substantial increase in AUM and the broadening of product offerings, positioning CoinShares as a key player in the U.S. market.

In addition, Mognetti underscored the significance of the U.S. market for asset managers and reiterated CoinShares’ dedication to delivering value to stakeholders.

On the other hand, Frank Spiteri, CoinShares’ Head of Asset Management, emphasized the firm’s unmatched expertise in digital assets and its commitment to guiding clients through the dynamic landscape. Spiteri highlighted CoinShares’ role as a trusted partner, offering innovative solutions and unparalleled research capabilities to navigate the complexities of digital assets.

Following the acquisition, CoinShares has initiated the seamless integration of Valkyrie into its portfolio of brands, aiming to unify product lineups under the CoinShares umbrella. This strategic decision reinforces brand consistency and amplifies brand awareness in the U.S. market. The integration process is expected to be finalized by summer, showcasing CoinShares’ dedication to delivering excellence in digital asset investment solutions.

Meanwhile, the news comes amid the growing popularity of the U.S. Spot Bitcoin ETF and Bitcoin’s surge to a new all-time high (ATH) above $72,000. This surge is fueled by robust inflows into the U.S. Bitcoin ETFs, indicating increasing interest from Wall Street players in the leading cryptocurrency.

Last week, the digital asset sector saw a total inflow of $2.68 billion, with the U.S. contributing around $2.8 billion. These developments highlight the escalating momentum behind Bitcoin as institutional investors continue to flock towards crypto investment avenues, propelling Bitcoin to new heights in the financial landscape.

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