As one of the preeminent crypto investment specialists in the United States, Valkyrie is a strong contender in the race to snap up demand for spot Bitcoin Exchange Traded Funds (ETFs) if/when they are approved by the U.S. Securities and Exchange Commission (SEC).
With the asset manager poised to benefit from a potential wave of new investment, European rival CoinShares has secured an option to acquire Valkyrie’s ETF business as it prepares to muscle in on the US market.
Growing out of the commodity hedge fund Global Advisors, CoinShares pivoted to Bitcoin in 2014 and hasn’t looked back. Now one of Europe’s leading digital asset investment firms, it has over $3.46B in assets under management and a stock market valuation of around 2.8B SEK ($260M USD).
Having secured its position in Europe, CoinShares made its first move into the American market in September, launching a new hedge fund division that sees the firm return to its roots.
Now, having acquired the right to buy Valkyrie’s ETF business, CoinShares is preparing to branch out into US exchange-traded products too.
The deal grants CoinShares the exclusive right to purchase Valkyrie Funds from Valkyrie Investments, including the Valkyrie Bitcoin Fund and any other relaunched ETFs. The option will remain open until March 31 while a licensing arrangement will allow Valkyrie to rebrand its funds as CoinShares products pending finalization.
Announcing the latest deal, CoinShares said the ultimate acquisition “is contingent on regulatory approvals and consents,” giving it a convenient get-out clause in the unlikely event that the SEC scuppers Valkyrie’s ETF plans.
Crucially, the deadline for CoinShares to follow through on its acquisition falls after March 17, the latest date for the SEC to approve or reject Valkyrie’s Bitcoin ETF application. The agency could also deliver a verdict earlier than that, with January 10 marked as the next key date for 12 pending applications.