One of the biggest bitcoin asset managers in Europe, CoinShares, has acquired the right to purchase exchange-traded funds from rival Valkyrie. Valkyrie is currently putting together a spot Bitcoin fund that is pending regulatory approval. By this action, CoinShares, a company based in St. Helier, Jersey, has acquired the right to purchase Valkyrie’s whole fund …
One of the biggest bitcoin asset managers in Europe, CoinShares, has acquired the right to purchase exchange-traded funds from rival Valkyrie. Valkyrie is currently putting together a spot Bitcoin fund that is pending regulatory approval. By this action, CoinShares, a company based in St. Helier, Jersey, has acquired the right to purchase Valkyrie’s whole fund division, including ETFs that have not yet launched but have outstanding applications. Currently, Valkyrie manages two ETFs: one based on Bitcoin miners, which has gained more than 100% and is among the top-performing non-leveraged equity ETFs of the year, and another that tracks Bitcoin and Ethereum futures. The combined assets of the two funds are approximately $57 million, as per data that Bloomberg has collated. Until CoinShares chooses to exercise its purchase option, which is available until the end of the first quarter of the next year, Valkyrie will continue to operate as an independent business. The Nashville, TN-based company plans to introduce a much awaited exchange-traded fund (ETF) that will follow spot prices for Bitcoin. Although market observers speculated that approval is imminent, the US Securities and Exchange Commission once again postponed deciding whether to approve the first US ETF that invests directly in Bitcoin this week. According to CoinShares’ Chief Executive Officer Jean-Marie Mognetti, it was their primary concern. “It would be extremely important for us if we could somehow participate in this race and find a way to cross the finish line with the right partner,” he remarked. CoinShares has been gaining traction in the United States market. In an effort to expand its clientele to include American investors, the asset management, which is in charge of managing over $3 billion, said in September that it was launching a hedge fund section. Since then, investors have been looking forward to the imminent launch of spot Bitcoin funds, and cryptocurrencies have been making a comeback. The biggest digital coin, which has increased in value by over 100% this year, is currently selling at about $37,000, a far cry from its all-time high of almost $69,000 in 2021.
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