CoinShares exercised an option to buy an exchange-traded funds business from rival Valkyrie Investments, two days after US regulators gave their first blessing to ETFs investing directly in Bitcoin.
According to a press release dated January 12, CoinShares has purchased Valkyrie Funds, an American investment firm that manages digital assets. The statement said the purchase decision is contingent on the U.S. Securities and Exchange Commission’s (SEC) approval of Valkyrie’s spot Bitcoin (BTC) ETF.
CoinShares’ current assets under management (AUM), which are currently $4.5 billion, should rise by about $110 million after the acquisition is completed.
The deal is still subject to the successful completion of due diligence, the signing of the required legal documents, and the board of directors of the company’s final approval. Valkyrie will continue to function independently up until that point. CoinShares announcement:
“Once finalised, this will lead to the direct integration of Valkyrie’s’ funds and operations into the CoinShares group.”
In June 2023, a subsidiary of Valkyrie Investments applied with the SEC to launch a Bitcoin-based ETF. The Trust released shares intended to offer a convenient and affordable option for Bitcoin investment.
In July 2023, Valkyrie also filed with the SEC to launch an Ethereum (ETH) ETF to invest in Ethereum futures on the CME, North America’s largest financial derivatives exchange, and high-quality securities, primarily U.S. Treasury bonds.
