CoinShares tees up potential buy of Valkyrie’s crypto ETF wing

CoinShares has secured an “exclusive option to acquire Valkyrie Funds,” the asset manager’s investment advisory business centered on crypto ETFs.

The deal was announced through a press statement on Thursday.

Additionally, CoinShares and Valkyrie have entered into a brand licensing agreement for Valkyrie’s products. This agreement means that Valkyrie has permission to use the CoinShares name for specific products and regulatory filings; most notably its pending Bitcoin spot ETF.

“Throughout the option period, Valkyrie Investments is granted a limited, revocable global license to use the “CoinShares” name for its S-1 filings with the SEC. Should the SEC approve the Valkyrie Bitcoin Fund, Valkyrie Investments plans to incorporate the CoinShares name, signifying CoinShares’ first venture into offering a mainstream crypto passive product in the U.S. market,” the press release said.

The option to acquire is active from Nov. 16 to March 31, 2024.

Until that time, “Valkyrie will continue to operate as an independent entity until CoinShares decides to exercise its option.”

“The global ETF market is fragmented. The establishment of crypto spot ETPs in Europe since 2015, a development about to be mirrored in the U.S., is the perfect illustration,” Jean-Marie Mognetti, CEO of CoinShares said.

“This disparity in market evolution presents both challenges and significant opportunities. The option to acquire Valkyrie is accelerating our expansion into the U.S. market and the deployment of our digital asset management expertise globally.”

Bloomberg analyst James Seyffart noted that the deal “would bring Coinshares into US with a splash.”

Have heard multiple rumors that Valkyrie’s fund shop was up for potential sale but this is first i’ve heard of anything official. Potentially big news for @ValkyrieFunds & @CoinSharesCo. Would Bring Coinshares into US with a splash. They’re currently a European crypto ETF issuer https://t.co/tYgxDmMbCJ

— James Seyffart (@JSeyff) November 16, 2023

Valkyrie is one of many companies vying for a spot bitcoin ETF, alongside Franklin Templeton and BlackRock.

The SEC has not decided whether to greenlight a spot bitcoin ETF or deny the pending applications. The regulator has, however, issued multiple delays, including a decision on Hashdex’s spot bitcoin ETF application earlier this week.

Valkyrie did not immediately return a request for comment.

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