CoinShares, a leading European digital asset investment firm, has successfully completed the acquisition of Valkyrie Funds, gaining sponsor rights to the firm’s spot Bitcoin exchange-traded funds (ETFs) in the process.

The acquisition also includes Valkyrie Investments, the firm’s investment advisory business, and the sponsor rights for its physically-backed Bitcoin (BTC) ETF, the Valkyrie Bitcoin Fund, as officially announced by CoinShares on March 12.

As part of the agreement, the acquisition price will be determined at the end of a three-year earnout period based on Valkyrie’s financial performance. CoinShares will also take over management of Valkyrie’s other ETFs, such as the Valkyrie Bitcoin and Ether Strategy ETF, the Valkyrie Bitcoin Miners ETF, and the Valkyrie Bitcoin Futures Leveraged Strategy ETF.

According to Jean-Marie Mognetti, CEO of CoinShares, the United States represents a crucial market for global asset managers. Mognetti emphasized that the Valkyrie acquisition aligns with their growth strategy, expanding their presence in the U.S. market. The acquisition adds $530 million in assets under management to CoinShares, diversifies their product offerings, boosts innovation capabilities, and significantly expands their total addressable market.

Following the acquisition, CoinShares plans to rebrand Valkyrie and its products under its own ecosystem. The acquisition of Valkyrie is a strategic move by CoinShares to enhance its asset management platform in the United States.

The announcement of the acquisition coincides with growing interest in Bitcoin ETFs, with Bitcoin reaching a new all-time high of $71,415 on March 11. The Bitwise Bitcoin ETF recently surpassed $2 billion in Bitcoin holdings, becoming the fifth fund to achieve this milestone, according to data from Dune.

If the current growth trends in ETFs continue, projections indicate that ETFs could absorb 8.98% of the BTC supply annually. This potential increase in institutional inflows could lead to a “sell-side liquidity crisis” by September, as suggested by Ki Young Ju, founder and CEO of on-chain analytics platform CryptoQuant.

Ethereum’s Dencun upgrade is set to launch in two days, promising significant developments in the cryptocurrency landscape. Stay tuned for more updates on the latest news and trends in the world of cryptocurrencies on Global Crypto News.

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