One of the world’s largest cryptocurrency investment companies, CoinShares, announced on the 12th that it has acquired Valkyrie Funds, one of the Bitcoin spot ETF issuers that recently obtained SEC approval this week.
CoinShares, with its assets under management (AUM) expected to increase by £110 million, exercised its “stock option” to acquire Valkyrie Funds. CoinShares obtained the stock option for Valkyrie Funds on November 16, 2023, with an expiration date of March 31, this year. The option gives CoinShares the right to purchase Valkyrie Funds’ stock at a low price, but whether to exercise the option ultimately depends on CoinShares.
After the completion of this acquisition, CoinShares’ AUM will increase by $110 million on top of the current $4.5 billion, which is approximately the sum of assets under Valkyrie Funds, including its Bitcoin spot ETF (Nasdaq:BRRR), Bitcoin and Ethereum Strategy ETF (Nasdaq:BTF), and Bitcoin Miners ETF (Nasdaq:WGMI).
The acquisition is still pending completion of due diligence, confirmation of legal agreements, and approval from the board of directors. Until then, Valkyrie Funds will continue to operate independently. Regarding this acquisition, CoinShares CEO Jean-Marie Mognetti stated:
CoinShares is a digital asset investment company based in Jersey, Europe. Its business includes providing investment management, trading, and securities and other financial services to corporations, financial institutions, and individuals. Since 2013, CoinShares has been focusing on cryptocurrency investments.
Valkyrie Investments is an asset management company based in Tennessee, USA, focusing on introducing investment products to the traditional financial market using blockchain technology. It manages approximately $180 million in assets.
Valkyrie Funds is a subsidiary of Valkyrie Investments specializing in cryptocurrency ETF research. It obtained SEC approval on January 11, 2024, to issue a Bitcoin spot ETF with the ticker symbol BRRR on Nasdaq.