According to Blockworks, CoinShares has obtained an exclusive option to acquire Valkyrie Funds, the investment advisory business focused on crypto ETFs. The deal was announced in a press statement on Thursday. Additionally, CoinShares and Valkyrie have entered into a brand licensing agreement for Valkyrie's products, allowing Valkyrie to use the CoinShares name for specific products and regulatory filings, including its pending Bitcoin spot ETF.
Throughout the option period, which runs from November 16 to March 31, 2024, Valkyrie Investments is granted a limited, revocable global license to use the CoinShares name for its S-1 filings with the SEC. If the SEC approves the Valkyrie Bitcoin Fund, Valkyrie Investments plans to incorporate the CoinShares name, marking CoinShares' first foray into offering a mainstream crypto passive product in the U.S. market. Until CoinShares decides to exercise its option, Valkyrie will continue to operate as an independent entity.
Jean-Marie Mognetti, CEO of CoinShares, commented on the global ETF market's fragmentation and the opportunities it presents. He said that the option to acquire Valkyrie accelerates CoinShares' expansion into the U.S. market and the deployment of their digital asset management expertise globally. Bloomberg analyst James Seyffart noted that the deal would bring CoinShares into the U.S. market with a splash.
Valkyrie is among several companies, including Franklin Templeton and BlackRock, competing for a spot bitcoin ETF. The SEC has not yet decided whether to approve or deny the pending applications for a spot bitcoin ETF, but it has issued multiple delays, including a decision on Hashdex's spot bitcoin ETF application earlier this week.
