CoinShares strengthens its global reach by completing acquisition of Valkyrie ETF Business
12 March 2024 - 10:00PM
CoinShares strengthens its global reach by completing acquisition
of Valkyrie ETF Business
- Acquisition follows entry into an
agreement granting CoinShares an exclusive option to acquire
Valkyrie Funds LLC (“Valkyrie”) and the Sponsor rights to BRRR,
Valkyrie’s physically-backed Bitcoin ETF
- Valkyrie’s regulatory licences are
complementary to CoinShares’ existing U.S. permissions and
contribute to establishing solid foundations for CoinShares to
continue executing its U.S. asset management expansion plan.
- It provides CoinShares with a
promising platform to expand its digital assets expertise into the
United States and contributes approximately $530 million of new
assets under management from $BTF, $WGMI, $BRRR, and $BTFX.
- CoinShares plans to rebrand Valkyrie
as the Company’s U.S. asset management platform that will
concentrate on creating innovative products that stand out in the
market.
- Valkyrie's product line will
eventually be operated under the CoinShares brand to
ensure brand consistency and awareness.
12th March 2024 | SAINT HELIER, Jersey |
CoinShares International Limited (“CoinShares” or “the Company”)
(Nasdaq Stockholm: CS; US OTCQX: CNSRF), the leading
European investment company specialising in digital assets, today
announced the completion of its acquisition of Valkyrie Funds LLC
(“Valkyrie”), the investment advisory business of Valkyrie
Investments Inc. (“Valkyrie Investments”), 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.
As previously announced, 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 — the highest-performing
non-leveraged ETF in 2023 across all sectors — and the newly
introduced $BTFX, a 2x leveraged bitcoin futures ETF. These
offerings demonstrate CoinShares’ commitment to delivering diverse
and advanced strategies that go beyond mere beta exposure to
digital assets. CoinShares is well equipped with a comprehensive
suite of tools, including hedge fund expertise, quantitative
research, equity analysis, and profound digital asset knowledge,
that has enabled the Company to craft innovative, high-performing,
and unique products tailored to investor expectations in the
evolving financial landscape.
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."
Frank Spiteri, CoinShares' Head of Asset
Management, remarked: "As Europe's leading investment company
specialising in digital assets, CoinShares has consistently
demonstrated trust and reliability with its crypto products and
services since 2014. Our expertise is unparalleled in the crypto
space, allowing us to serve not just as leaders but also as
educators for our clients. We are committed to guiding them through
this dynamic journey, which is supported by our seasoned research
team and innovative solutions. Our promise is to be a trusted
partner in navigating the complexities of digital assets."
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.
Technical note: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. The definitive agreements contain
customary vendor and purchaser representations.
ABOUT COINSHARESCoinShares is
the leading European investment company specialising in digital
assets, that delivers a broad range of financial services across
investment management, trading and securities to a wide array of
clients that includes corporations, financial institutions and
individuals. Focusing on crypto since 2013, the firm is
headquartered in Jersey, with offices in France, Sweden,
Switzerland, the U.K. and the U.S. CoinShares is regulated in
Jersey by the Jersey Financial Services Commission, in France by
the Autorité des marchés financiers, in the U.S. by the Financial
Industry Regulatory Authority. CoinShares is publicly listed on the
Nasdaq Stockholm under the ticker CS and the OTCQX under the ticker
CNSRF.
For more information on CoinShares,
please visit:
https://coinshares.comCompany | +44 (0)1534 513
100 | enquiries@coinshares.comInvestor Relations |
+44 (0)1534 513 100 | enquiries@coinshares.com
PRESS CONTACT
CoinSharesBenoît
Pellevoizinbpellevoizin@coinshares.com+33 6 72 44 07 17
M Group Strategic
CommunicationsPeter Padovanopress@coinshares.com
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