CoinShares is a multi-national asset management firm with a recent AUM valuation of $7.3 billion as per Cointelegraph. The firm is based out of Europe and recently availed the option to acquire Valkyrie Funds.
As per media reports, sponsorship rights to spot Bitcoin ETF issued by Valkyrie are part of the acquisition contract. In the same manner, CoinShares has attained the investment advisory business of the firm as per an announcement published on 12th March.
This total cost of the acquisition will be completed at the end of 3-year earn out period based on financial results generated by Valkyrie. This deal is also going to assign other ETFs managed by Valkyrie to CoinShares. Some of these investment vehicles include Bitcoin and Ethereum Strategy ETF.
In the same way, CoinShares also gained Bitcoin Miners ETF and Bitcoin Futures Leveraged Strategy ETF operated formerly by Valkyrie.
CoinShares CEO, Jean-Marie Mognetti, told Cointelegraph that USA is an important market for global asset management ventures. He further stated that Valkyrie purchase is part of the growth and development plan of the firm.
He further noted that this acquisition has contributed an additional $530 million AUM to the firm. In this manner, the asset manager has stayed the top-line contributor from day one. In the same way, this product has expanded the product diversity for clients.
Valkyrie Rebranding
CoinShares further stated that the purchase of Valkyrie has increased the innovation capacity by 15 times. Additionally, it has also granted strength to the innovative approach. After the acquisition, CoinShares is going to start working on rebranding Valkyrie and its listed products as part of its own ecosystem. The rebranding will preserve the goodwill among investors and prevent any liquidation risks on account of previous issuer.
CoinShares had the option to acquire Valkyrie since November, 2023. Meanwhile, Bitwise Bitcoin ETF is the latest spot Bitcoin ETF to cross $2 billion in BTC holdings as of 11th March. In this manner, it has become the 5th fund to complete this major milestone in accordance with Dune analytics.
However, Grayscale Bitcoin Trust ETF remains the biggest Bitcoin holder with $29 billion Bitcoin in AUM.
Cointelegraph has noticed that during the last 14 days, ETF trading volumes continue to balloon. As per CryptoQuant CEO, Ki Young Ju exchange traded funds are set to acquire 8.98% of the total Bitcoin supply in the upcoming 12 months.
Ju retained that this could mean sell-side liquidity crisis in 3rd quarter of the ongoing year granted that institutional inflows continue. Spot Bitcoin ETFs recorded net inflows of more than 30 thousand Bitcoins with entities such as exchanges and miners reporting 3 million Bitcoins.
Franklin Templeton Joins the Race for Spot Ethereum ETF
After Ark 21Shares, Franklin Templeton has also joined the list of institutions that have applied for a spot Ethereum ETF. However, the FT intends to generate extra income by adding ETH staking option as per a filing on 12th February, 2024.
With the latest changes, the firm has now joined the host of institutional firms such as Invesco Galaxy, Hashdex, BlackRock, VanEck, Fidelity, and Grayscale. The regulators are due to issue a final verdict regarding the matter in May and August.
The firm has also filed for S-1 filing last week in the same way as ARK 21Shares. At the same time, the firm complimented the fundamentals of other blockchain networks such as Solana. These comments have sparked the news that the ETF issuing firm may expand its digital asset services in the future.
Capital Raising Request
Another important development reported in the same Cointelegraph is the approval of capital raising request from Bakkt. The firm filed for a request to issue additional shares as a way to raise investment capital a few years ago with the Securities and Exchange Commission.
As per the approval, the firm can now issue shares to generate up to $150 million. The approval was confirmed only a week after the firm aired concerns regarding its balance sheet. Bakkt is a crypto custodial and trading services provider.
