The day after spot bitcoin ETFs made their debut in the United States, cryptocurrency asset management CoinShares (CS) exercised its option to purchase the exchange-traded fund (ETF) division of Nashville, Tennessee-based Valkyrie Investments.
The Saint Helier, New Jersey-based CoinShares firm, which obtained the option on Valkyrie Funds in November, announced on Friday that it had chosen to execute the option as a direct consequence of the Securities and Exchange Commission’s (SEC) approval of the listing of six bitcoin ETFs, which included Valkyrie’s Bitcoin Fund (BRRR).
Trading volume for the ETFs increased to $4.6 billion on Thursday, with $9.3 million coming from BRRR. After trading began, bitcoin quickly reached above $49,000 before plunging as low as $45,700 as the initial excitement subsided.
Thanks to our experience, we now control more than 40% of the assets managed in cryptocurrency exchange-traded funds (ETPs) in Europe, making us market leaders. In a statement, CEO Jean-Marie Mognetti stated, “We intend to extend our European success in the U.S. by exercising our option to acquire Valkyrie Funds.”
CoinShares’ current assets under management (AUM) of $4.5 billion will increase by about $110 million as a result of the transaction. CoinShares acquires the Bitcoin and Ether Strategy ETF (BTF) and the Bitcoin Miners ETF (WGMI) in addition to the recently approved spot fund.
The acquisition’s financial parameters were not made public. It is contingent upon the successful completion of due diligence.
The shares of CoinShares traded on the Nasdaq Stockholm dropped 1.83% to 40.15 Swedish krona ($3.91).