Capital markets News

CoinShares exercises option to buy crypto ETF firm Valkyrie

ETF cryptocurrency asset management

Today crypto asset manager CoinShares said it is acquiring smaller crypto fund manager Valkyrie Funds to accelerate its entrance into the U.S. market. It exercised an existing option to buy the company. 

CoinShares manages exchange-traded products with $4.5 billion in assets under management. With headquarters in Jersey, the company’s primary presence is in Europe, with its Swedish subsidiary managing $2.5 billion in assets.

One of the 11 spot Bitcoin exchange traded funds (ETFs) approved by the U.S. SEC this week is Valkyrie’s Bitcoin Fund. It has around $110 million in assets under management across three ETFs.

The crypto crash hit the asset manager hard. In 2022 it had more than a billion in assets under management. During that year BNY Mellon participated in an $11 million funding round.

Meanwhile, Coinshares Physical Bitcoin ETP (BITC) has almost $700m in assets under management and is listed on SIX, Börse Xetra and Euronext. 

“Our expertise has enabled us to dominate the European market, commanding over 40% of all assets under management in crypto ETPs,” said Jean-Marie Mognetti, CEO of CoinShares. “Exercising our option to acquire Valkyrie Funds aims at extending our European success in the U.S., offering unparalleled access to regulated digital asset products to American investors.”

CoinShares uses Komainu to custody its cryptocurrency. CoinShares co-founded the digital asset custody firm as a joint venture with Nomura and wallet startup Ledger. One of its major investors is Alan Howard, co-founder of Elwood Technologies.

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