CoinShares have confirmed tapping the opportunity to purchase Valkyrie’s crypto unit to trigger the option earlier secured in November last year. CoinShares confirmed it would exercise the option following the US Securities and Exchange Commission (SEC) approval to issue a spot Bitcoin exchange-traded fund (ETF).
Valkyrie was among the 11 applicants whose bid was approved by the Gary Gensler-led SEC to issue a spot Bitcoin ETF. The historic decision by the SEC on Wednesday, January 10, prompted the European-based crypto investment firm CoinShares to exercise an option to acquire the US-based Valkyrie Funds.
CoinShares to Purchase Valkyrie
CoinShares revealed in a Friday, January 12 statement that it would advance in exercising the strategic option to purchase Valkyrie. The move aligns with CoinShare’s objective to strengthen efforts to penetrate the lucrative US market.
The CoinShares spokesperson was elusive on the terms of the acquisition deal. Nonetheless, the executive observed that CoinShares targets the pole position in global investment companies offering crypto-specific assets.
The CoinShares executive hailed the deal to acquire Valkyrie Funds, given that it offers a logical expansion into the US amid the spot Bitcoin ETF race.
CoinShares’ official statement indicated that the firm chose to exercise the option following the approval of Valkyrie’s spot Bitcoin ETF. The statement noted that the Valkyrie Bitcoin Fund began trading on Thursday, January, using the BRRR ticker.
A review of spot Bitcoin ETF trading on the inaugural day saw Valkyrie’s BRRR ETF realized $9 million in trade as per Yahoo Finance data. The activity was meager relative to height scaled by Grayscale, translating to $2 billion.
The acquisition process is awaiting the completion of due diligence checks, finalization of legal agreements, and board approval. The statement indicates that Valkyrie Funds will exercise operational independence till the acquisition is executed fully.
CoinShares Seeks to Replicate European Success in US
CoinShares secured the option to buy the Valkyrie’s crypto unit in November last year. The option to exercise the buy will remain active for CoinShares till March 31.
CoinShares’ progress in the potential acquisition aligns with the developments within the US regulatory landscape. Such is critical to the US CoinShares’ strategy to expand its digital asset offerings in the U.S. market.
CoinShares US executive Jean-Marie Mognetti indicated that exercising the option to purchase Valkyrie Funds targets extending European success in the United States. It offers unparalleled access to regulated crypto products to American investors.
Valkyrie chief executive Leah Wald observed that CoinShares’ expertise integrated with its strengths to propel them towards expanding in the American crypto investment sphere. The executive considers the pursuit of the crypto ETF market harboring potential growth.
Foreign Companies Collaborate with US Entities
The CoinShares-Valkyrie collaboration in the ETF product replicates familiar alliances. Major European-based crypto investment firms are actively cooperating with their US counterparts.
21Shares is a leading issuer of crypto exchange-traded products (ETPs) in Europe, partnered with Cathie Wood’s Ark Invest to issue the 21Shares Bitcoin ETF currently trading under the ARKB ticker symbol following its listing on the Cboe exchange.
CoinShares’ decision to acquire Valkyrie replicates the move by Monex Group to buy the majority stake within the asset manager 3iQ Digital Holdings. The Japan-based brokerage and asset management specialist is seeking entry into the North American market.
3iQ chief executive Frederick Pye revealed that Monex Group seeks to collaborate with Coincheck, earlier acquired in 2018. The move to exercise the option to acquire active firms is facilitating easy expansion into the established markets.
Like CoinShares expansion into the US market, Monex reveals in the December 28 update that 3iQ Digital Holdings has nurtured experience in offering spot Bitcoin and Ether ETFs listed within North America.
Like Valkyrie Fund’s securing approval for spot Bitcoin ETF, the Canadian firm unveiled the Bitcoin fund in 2020 to offer similar products.
The decision, whose execution coincides with CoinShares acquiring the US Bitcoin ETF issuer, portrays a move by foreign companies to enter the market by acquiring active firms.
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