Valkyrie’s acquisition option: a strategic milestone for CoinShares
In the dynamic world of digital assets, CoinShares has been a beacon of innovation and trust for a decade. As we celebrate the fifteenth anniversary of Bitcoin, it's remarkable to reflect on our journey and the evolution of this industry. Our story, which began in 2014 with the first Bitcoin regulated hedge fund, has been characterised by a remarkable growth trajectory marked by significant milestones, including the acquisition of XBT Provider in 2016, the first-ever Bitcoin ETP, and the launch of the CoinShares Physical range of ETCs for institutional clients in 2021. In September, we further expanded our offerings with our Hedge Fund Solutions division for institutional clients.
At its core, CoinShares simplifies access to digital assets through regulated, reliable financial instruments. Yet, our role is much more profound. We stand at the intersection of two transformative trends: the securitisation of digital assets and the tokenization of traditional assets like stocks, bonds, and real estate. CoinShares primarily acts as a digital-analog transformer. We transform assets from a decentralised ecosystem into financial instruments suitable for a centralised economy, ensuring a seamless investor experience within a regulated framework. This is just the first step in our journey; CoinShares is committed to long-term growth, and while the path ahead may be uncharted, our focus remains steadfast on navigating the evolving landscape of digital assets.
I first met Valkyrie's co-founder Leah earlier this year at iConnections, while her co-founder Steven was on a work trip in Dubai. I was familiar with their business but had not previously had the opportunity for an in-depth discussion. Upon my first meeting with them, it was immediately clear that we shared a similar DNA, resonating with the same energy and pioneering spirit that has both sparked and continuously drives the passion of CoinShares' founders and early Bitcoin advocates. They have crafted renowned and trusted investment platforms and demonstrated remarkable foresight by entering the US spot Bitcoin ETF arena. We are both coming from the traditional finance and regulatory sphere, yet equally passionate about the decentralised finance revolution. We share a common mission – to transform assets from decentralised ecosystems into financial instruments tailored for the centralised economy.
Hence when Leah and Steven expressed their desire to collaborate with a strong, growth-oriented partner, it immediately resonated with me. I directly requested our Executive Committee to initiate collaboration with Valkyrie and conduct thorough due diligence. This study revealed significant synergies. I am well aware that theory differs from practice, and only excellent execution will generate extraordinary results for both CoinShares and its investors.
I am today excited to announce a remarkable milestone in our journey: CoinShares has secured a strategic acquisition option for Valkyrie Funds, LLC which should complete in Q1 2024. This partnership marks a new chapter, enabling CoinShares to offer a global ‘one-stop shop’ investment experience across Europe and the US, with a diverse and comprehensive suite of products. Our European portfolio, featuring passive products issued by XBT Provider and CoinShares Physical, will soon be enhanced by the imminent launch of a Spot Bitcoin ETF in the US. In terms of digital asset industry exposure, our CoinShares Blockchain Global Equity Index (BLOCK Index), providing access to companies engaged in the blockchain and cryptocurrency ecosystem, will be complemented by Valkyrie's WGMI, an actively managed ETF focused on public companies in the bitcoin mining industry. For those seeking actively managed listed products, our expertise in quantitative trading will be effectively utilised in Valkyrie's actively managed ETF platform, providing a comprehensive and dynamic approach for investors.
The entire CoinShares team, board, and shareholders look forward to working with Valkyrie. Together, we are set to leave our mark on the global digital asset investment landscape, offering unparalleled opportunities to investors in this ever-evolving market.
Jean-Marie Mognetti
CEO of CoinShares