CoinShares
International Limited, a European investment company specializing in digital
assets, has secured an option to acquire Valkyrie Funds LLC, the U.S. digital
asset manager’s investment advisory business known for actively managed
cryptocurrency exchange-traded funds (ETF). The option, active until March 31,
2024, allows CoinShares to explore the acquisition of Valkyrie Funds from
Valkyrie as exclusive Investments.
CoinShares,
with a presence in the European crypto exchange-traded product market, managing
over $3.2 billion in assets under management, sees this move as a step toward
expanding into the U.S. market. The acquisition option follows the recent
launch of CoinShares Hedge Fund Solutions in September 2023.
CEO
Jean-Marie Mognetti highlighted the fragmented nature of the global ETF market
and sees the option to acquire Valkyrie as a catalyst for accelerating
CoinShares’ expansion into the U.S., leveraging Valkyrie Fund’s understanding
of the market and expertise in developing crypto investment products.
As
part of the deal, CoinShares and Valkyrie Investments have finalized a brand
licensing agreement, allowing Valkyrie to use the “CoinShares” name
for SEC filings during the option period. If the SEC approves the Valkyrie
Bitcoin Fund, Valkyrie Investments plans to incorporate the CoinShares name,
marking CoinShares’ entry into offering mainstream crypto passive products in
the U.S.
The
acquisition option grants CoinShares the exclusive right to purchase 100% of
Valkyrie Funds, including associated rights with the Valkyrie Bitcoin Fund and
other unlaunched ETFs held by Valkyrie Investments. The execution of the
acquisition is contingent on regulatory approvals, due diligence, and the
completion of legal agreements. Until any potential acquisition is finalized,
Valkyrie Funds will continue to operate independently.
CoinShares, one of Europe’s largest cryptocurrency asset managers, has secured the option to acquire funds from competitor Valkyrie in what would be a melding of two digital-asset-centric firms that focus on exchange-traded products https://t.co/yhCy6DtU3H
— Bloomberg Crypto (@crypto) November 16, 2023
CoinShares
Q2 Financial Report: Presence in Germany and Switzerland
Finance Magnates reported earlier that
CoinShares
International Limited had reported financial performance for Q2 2023. The
company’s revenue for the quarter rose by £5 million to £20.3 million compared
to the same quarter in 2022, marking a 33% quarter-on-quarter growth.
The
adjusted EBITDA for the quarter reached £12.8 million, marking CoinShares’ best
quarter in over a year. The comprehensive income for the quarter amounted to
£5.3 million, a significant improvement from the previous year’s loss of £0.6
million.
The
Passive Asset Management division played a crucial role, generating £10.6
million in management fees during the quarter. CoinShares expanded
its outreach in Germany and Switzerland through targeted events, educating
potential investors about cryptocurrencies and Exchange-Traded Products (ETPs).
The
Capital Markets division reported gains and other income of £10 million in Q2,
effectively balancing the impact of BTC and ETH price fluctuations on liquidity
provisioning income.
CEO
Mognetti emphasized the ongoing convergence between traditional and digital
finance, citing the company’s ability to capitalize on this trend. The results
suggest a growing institutionalization of the cryptocurrency industry,
attracting more professional investors.
Earlier,
the company made strategic investments in FlowBank and acquired Napoleon Asset
Management, positioning itself as the second-largest provider of
cryptocurrency-based instruments in the industry, with assets under management
totaling $1.8 billion.
CoinShares
International Limited, a European investment company specializing in digital
assets, has secured an option to acquire Valkyrie Funds LLC, the U.S. digital
asset manager’s investment advisory business known for actively managed
cryptocurrency exchange-traded funds (ETF). The option, active until March 31,
2024, allows CoinShares to explore the acquisition of Valkyrie Funds from
Valkyrie as exclusive Investments.
CoinShares,
with a presence in the European crypto exchange-traded product market, managing
over $3.2 billion in assets under management, sees this move as a step toward
expanding into the U.S. market. The acquisition option follows the recent
launch of CoinShares Hedge Fund Solutions in September 2023.
CEO
Jean-Marie Mognetti highlighted the fragmented nature of the global ETF market
and sees the option to acquire Valkyrie as a catalyst for accelerating
CoinShares’ expansion into the U.S., leveraging Valkyrie Fund’s understanding
of the market and expertise in developing crypto investment products.
As
part of the deal, CoinShares and Valkyrie Investments have finalized a brand
licensing agreement, allowing Valkyrie to use the “CoinShares” name
for SEC filings during the option period. If the SEC approves the Valkyrie
Bitcoin Fund, Valkyrie Investments plans to incorporate the CoinShares name,
marking CoinShares’ entry into offering mainstream crypto passive products in
the U.S.
The
acquisition option grants CoinShares the exclusive right to purchase 100% of
Valkyrie Funds, including associated rights with the Valkyrie Bitcoin Fund and
other unlaunched ETFs held by Valkyrie Investments. The execution of the
acquisition is contingent on regulatory approvals, due diligence, and the
completion of legal agreements. Until any potential acquisition is finalized,
Valkyrie Funds will continue to operate independently.
CoinShares, one of Europe’s largest cryptocurrency asset managers, has secured the option to acquire funds from competitor Valkyrie in what would be a melding of two digital-asset-centric firms that focus on exchange-traded products https://t.co/yhCy6DtU3H
— Bloomberg Crypto (@crypto) November 16, 2023
CoinShares
Q2 Financial Report: Presence in Germany and Switzerland
Finance Magnates reported earlier that
CoinShares
International Limited had reported financial performance for Q2 2023. The
company’s revenue for the quarter rose by £5 million to £20.3 million compared
to the same quarter in 2022, marking a 33% quarter-on-quarter growth.
The
adjusted EBITDA for the quarter reached £12.8 million, marking CoinShares’ best
quarter in over a year. The comprehensive income for the quarter amounted to
£5.3 million, a significant improvement from the previous year’s loss of £0.6
million.
The
Passive Asset Management division played a crucial role, generating £10.6
million in management fees during the quarter. CoinShares expanded
its outreach in Germany and Switzerland through targeted events, educating
potential investors about cryptocurrencies and Exchange-Traded Products (ETPs).
The
Capital Markets division reported gains and other income of £10 million in Q2,
effectively balancing the impact of BTC and ETH price fluctuations on liquidity
provisioning income.
CEO
Mognetti emphasized the ongoing convergence between traditional and digital
finance, citing the company’s ability to capitalize on this trend. The results
suggest a growing institutionalization of the cryptocurrency industry,
attracting more professional investors.
Earlier,
the company made strategic investments in FlowBank and acquired Napoleon Asset
Management, positioning itself as the second-largest provider of
cryptocurrency-based instruments in the industry, with assets under management
totaling $1.8 billion.