CoinShares, a European digital asset management firm, has obtained the exclusive option to acquire the exchange-traded fund (ETF) unit of U.S.-based competitor Valkyrie Investments. This includes the highly anticipated Valkyrie Bitcoin Fund, currently awaiting regulatory approval in the United States. The deal comes at a crucial juncture as Bitcoin ETF applications in the U.S. seem to be edging closer to regulatory approval.
CoinShares Expands into the U.S. Market
CoinShares, on November 17, revealed that the acquisition of Valkyrie’s ETF unit provides a gateway for the European firm to expand its presence in the United States. With the U.S. poised to become a focal point for ETF offerings, the prominent asset management aims to capitalize on the potential opportunities in what is currently a fragmented global ETF market. CEO Jean-Marie Mognetti expressed optimism about the move, citing the impending development in the U.S. mirrors the establishment of crypto spot ETPs in Europe since 2015.
Key Terms and Collaboration Details
The agreement between both parties also encompasses a brand licensing term. This stipulates that the CoinShares name will be featured in future S-1 filings with the Securities and Exchange Commission (SEC), a process utilized when companies plan to go public.
Pending SEC approval for the Valkyrie Bitcoin Fund, the plan includes incorporating the CoinShares name into the ETF.
As CoinShares takes a proactive stance in expanding its footprint in the U.S. through the acquisition option of Valkyrie’s ETF unit, the cryptocurrency industry eagerly awaits regulatory developments. With Bitcoin ETF applications progressing, the collaboration between these two crypto-centric firms signals a potential shift in the dynamics of the U.S. ETF market. The outcome could reshape the landscape and provide investors with new opportunities in the evolving realm of digital assets.