CoinShares Acquires Valkyrie to Corner Bitcoin ETF Market

CoinShares International Limited acquires Valkyrie Funds LLC, enhancing its presence in the US digital asset market.

ETF trying hard to not touch the lazer traps.
Created by Kornelija Poderskytė from DailyCoin
  • CoinShares acquires Valkyrie Funds.
  • SEC approves Valkyrie’s Bitcoin ETF.
  • The acquisition adds $110 million to CoinShares’ AUM.

The cryptocurrency market is witnessing escalating competition among Bitcoin exchange-traded funds (ETFs) following the U.S. Securities and Exchange Commission’s (SEC) regulatory approval

CoinShares International Limited, a digital asset investment firm, has officially announced the acquisition of Valkyrie Funds LLC. This acquisition comes after the SEC approved Valkyrie’s spot Bitcoin ETF.

CoinShares Boosts its Presence With Valkyrie Acquisition

CoinShares, a European leader in digital asset investments, has acquired Valkyrie Funds LLC, a U.S.-based digital asset manager specializing in crypto ETFs. The Valkyrie Bitcoin Fund (BRRR) was acquired on Friday, January 12, one day after it began trading on Nasdaq.

The acquisition is expected to increase CoinShares’ Assets Under Management (AUM) by approximately $110 million. This figure represents the current AUM of Valkyrie’s existing ETF products, including The Valkyrie Bitcoin and Ether Strategy ETF (Nasdaq: BTF) and The Valkyrie Bitcoin Miners ETF (Nasdaq: WGMI). CoinShares’ current AUM stands at $4.5 billion.

According to the announcement, Valkyrie Funds will maintain its operational independence until the acquisition is fully executed and finalized.

Competition Among Bitcoin ETFs Ramps Up

Recent news reveals heightened competition among leading financial entities like Valkyrie, WisdomTree, BlackRock, Invesco, and VanEck. These firms have submitted updated filings for a spot Bitcoin ETF, disclosing competitive fee structures that are reshaping the market dynamics.

BlackRock announced a fee of 0.30% for its Bitcoin ETF, lower than anticipated, prompting ARK Invest to adjust its fee to 0.25%. This move pressures other market participants, with VanEck also setting a competitive 0.25% fee.

On the Flipside

  • The entry of these key players into the Bitcoin ETF market is not just about competitive fees but also signals a shift in market share. Bernstein analysts predict that within five years, approximately 10% of the global supply of BTC, roughly $300 billion, could be managed by ETFs.
  • While fee wars are a highlight, ETFs are expected to bring increased liquidity, credibility, and market stability to cryptocurrencies, akin to other asset classes such as gold. 

Why This Matters

The evolving competition among cryptocurrency ETFs represents a maturation of the crypto market. This transition is crucial for broader investor participation and the overall credibility of cryptocurrencies as a viable asset class.

Read more about the fee war among top Bitcoin ETFs: 
Breaking: SEC Finally Approves All Spot Bitcoin ETFs

Read more about the response of other countries to the SEC’s approval: 
South Korea Firm on Bitcoin ETF Ban, Despite US Approval

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.