Strategic Alliance Following Successful Debut of First Bitcoin ETFs in the U.S.

• CoinShares strengthens its presence in the U.S. market by acquiring Valkyrie Funds, issuer of a successful Bitcoin ETF.
• The strategic expansion seeks to capitalize on the SEC’s landmark approval for spot Bitcoin ETFs.

European firm CoinShares is looking to consolidate in the emerging U.S. spot Bitcoin exchange-traded fund (ETF) market following the successful ETF launch by Valkyrie Funds, a unit of Valkyrie Investments.

On Friday, January 12, CoinShares announced its acquisition of Nashville-based Valkyrie Funds, exercising an option secured in November. The move is backed by SEC approval to list spot Bitcoin ETFs, including Valkyrie’s product, which debuted on Nasdaq under the symbol ‘BRRR’. Valkyrie was a pioneer in receiving regulatory approval.

By taking this action, CoinShares is expanding its presence in the U.S. market and diversifying its European business by adding a U.S. division. In addition, the company will acquire assets of around USD $110 million managed by Valkyrie, spread across the Valkyrie Bitcoin and Ether Strategy ETF (BTF), the Valkyrie Bitcoin Miners ETF (WGMI) and the recently launched BRRR.

Jean-Marie Mognetti, CEO of CoinShares, stated:

“Our expertise has positioned us as a leader in the European market, controlling more than 40% of all assets under management in crypto ETPs. The decision to exercise our option to acquire Valkyrie Funds is aimed at expanding our European success into the U.S. market.”

The purchase comes after the SEC approved historically eleven spot Bitcoin ETFs, including products from BlackRock, Franklin Templeton, Fidelity, Invesco, Ark, Grayscale and other prominent issuers. In their initial trading day, the spot ETFs reached a total trading volume in excess of USD $4.5 billion.

Valkyrie’s spot Bitcoin ETF underperformed in trading volume, posting approximately USD $9 million compared to competitors such as BlackRock and Grayscale. After its launch, the Bitcoin price reached about USD $49,000, but experienced a rapid decline.

Shares of various crypto companies, including CoinShares, also experienced a depreciation in the last 24 hours. The company suffered a loss of more than 5% in the Stockholm market.

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