CoinShares completes acquisition of Valkyrie ETF business
CoinShares International Limited today announced the completion of its acquisition of Valkyrie Funds LLC, the investment advisory business of Valkyrie Investments Inc., as well as the Sponsor rights to the Valkyrie Bitcoin Fund, the physically-backed Bitcoin ETF.
With the addition of approximately Valkyrie’s $530 million of assets under management (AUM), CoinShares’ AUM has increased to approximately $7.3 billion globally as of 11th March 2024. This pivotal move significantly accelerates CoinShares’ expansion into the U.S. market and is a further milestone towards building a global asset management franchise.
CoinShares has held an option to acquire Valkyrie since November 2023, which was exercised following Valkyrie Investments’ launch of Valkyrie Bitcoin Fund in January 2024. The close of the acquisition enhances CoinShares’ deep commitment to Valkyrie’s growth and success while also promoting the creation of cutting-edge digital asset investment solutions.
Looking ahead, CoinShares plans to use the Valkyrie ETF infrastructure to develop its U.S. asset management business, with a clear focus on product innovation and market differentiation. The new platform will operate as a forward-looking thematic asset manager for the U.S. market, leaning on the success of unique thematic products such as $WGMI and the newly introduced $BTFX, a 2x leveraged bitcoin futures ETF.
Jean-Marie Mognetti, CEO of CoinShares, commented on the acquisition:
“10 years ago, CoinShares started offering digital asset exposure to European investors through regulated products with a steadfast commitment to innovation and being first to market.
The Valkyrie acquisition is yet another step in our growth strategy with a special focus this time in the U.S. This acquisition brings an additional $530 million AUM to CoinShares, which makes it a top line contributor from day one. More importantly, it broadens our product offerings, strengthens our innovation capacity, and increases by a factor of 15 our total addressable market.
The U.S. represents a critical market for any asset manager and with a dedicated platform as well as the right product-market fit, CoinShares is poised to deliver significant value to its stakeholders.
We welcome our Valkyrie colleagues to the CoinShares team and are looking forward to their contribution to our journey.”
Following the completion of the acquisition, CoinShares has initiated the process of seamlessly blending Valkyrie into its portfolio of brands, with both teams working together to ensure a smooth transition and the continued excellence of product offerings. Central to this integration is the strategic decision to rebrand Valkyrie under the CoinShares umbrella.
This initiative, which is expected to be finalised by the summer, aims to unify the product lineup across the entire CoinShares ecosystem, thereby reinforcing brand consistency and amplifying brand awareness in the U.S.
On 12th March 2024 CoinShares and Valkyrie Investments Inc. signed and closed the definitive agreements completing CoinShares acquisition of Valkyrie Funds LLC, the U.S. digital asset manager’s investment advisory business specialising in actively managed cryptocurrency exchange-traded funds. The final purchase price, which is settled at the end of a three-year earnout period, depends on the financial results of the acquired business.