Coinshares Valkyrie ETF Acquisition Now Complete

CoinShares acquires Valkyrie ETF business, boosting assets to $7.3 billion and expanding U.S. market presence.

In a strategic move that shows its commitment to growth, especially in the U.S. market, CoinShares has successfully acquired the exchange-traded funds (ETF) business of Valkyrie Funds. This acquisition not only enhances CoinShares’ assets under management (AUM) but also marks a significant milestone in its expansion strategy, particularly within the United States. With this latest development, CoinShares’ global AUM has surged to an impressive $7.3 billion.

Strategic Growth 

The acquisition includes the sponsor rights to Valkyrie’s spot Bitcoin ETFs and its investment advisory division, Valkyrie Investments. Furthermore, CoinShares now holds the sponsor rights for Valkyrie’s physically-backed Bitcoin ETF, the Valkyrie Bitcoin Fund. The completion of this deal was announced on March 12, adding a substantial $530 million AUM to CoinShares’ portfolio and significantly increasing its product range and innovation capabilities.

As part of the acquisition agreement, the final purchase price will be determined at the end of a three-year period, reflecting Valkyrie’s financial performance. This agreement extends CoinShares’ management to Valkyrie’s diverse ETF lineup, which includes the Valkyrie Bitcoin and Ether Strategy ETF, Valkyrie Bitcoin Miners ETF, and the Valkyrie Bitcoin Futures Leveraged Strategy ETF.

Jean-Marie Mognetti, CEO of CoinShares, emphasized the importance of the U.S. market for global asset managers and highlighted how the Valkyrie acquisition aligns with CoinShares’ growth strategy. This move could multiply CoinShares’ total addressable market by 15 times, showcasing its potential for future growth and innovation.

Rebranding and Market Impact

Following this acquisition, CoinShares plans to rebrand Valkyrie and its products, integrating them into the CoinShares ecosystem. This decision follows CoinShares’ option to acquire Valkyrie, exercised since November 2023, demonstrating its long-term vision for expansion in the U.S. asset management space.

This acquisition coincides with a peak in Bitcoin ETF interest, following Bitcoin’s record-breaking price surge to over $71,415 on March 11. The Bitwise Bitcoin ETF recently joined the elite $2 billion club in Bitcoin holdings, becoming the fifth fund to reach this milestone. Despite Grayscale’s Bitcoin Trust ETF leading with $29 billion in Bitcoin AUM, the growing interest in Bitcoin ETFs suggests a significant shift in investment trends.

On-chain analytics predict that if the current growth pace persists, Bitcoin ETFs could account for nearly 9% of the BTC supply annually. This trend could potentially trigger a sell-side liquidity crisis by September, should institutional inflows continue at the current rate. The remarkable net flows into spot ETFs and the significant holdings by known entities underscore the rapidly evolving dynamics within the cryptocurrency market.