Introduction
Coinshares International Limited, a digital asset management firm based in Saint Helier, announced on Friday that it has acquired Valkyrie Funds LLC, a US-based digital asset manager. The acquisition was primarily driven by Valkyrie's recent approval for a spot bitcoin exchange-traded fund (ETF).
Expansion in the US Market
Coinshares revealed on January 12, 2024, that it has successfully acquired Valkyrie, along with its existing exchange-traded products, including the Valkyrie Bitcoin Fund (BRRR), the Bitcoin and Ether Strategy ETF (BTF), and the Bitcoin Miners ETF (WGMI). This strategic move aligns with Coinshares' goal of providing digital currency offerings in the US market.
Back in September 2023, Coinshares had already announced its hedge fund division and plans for expansion in the US. With the acquisition of Valkyrie, Coinshares will further strengthen its position in the market, increasing its assets under management (AUM) from $4.5 billion to $4.61 billion.
Coinshares' CEO on the Acquisition
Jean-Marie Mognetti, the CEO of Coinshares, expressed his enthusiasm about the acquisition, stating, "Exercising our option to acquire Valkyrie Funds aims at extending our European success in the US, offering unparalleled access to regulated digital asset products to American investors. This expansion demonstrates our strong interest in acquisitions to support our ambition of becoming a global leader in the digital asset space."
Next Steps
The acquisition process is still underway and is subject to thorough due diligence, finalization of legal agreements, and approval from the Coinshares' board. Until the acquisition is completed, Valkyrie Funds will continue to operate independently.
Leah Wald, the CEO of Valkyrie, expressed excitement about the partnership, stating, "Coinshares has established itself as a premier player in the digital asset space, and we're excited to see how they continue advancing the space by leveraging Valkyrie's team and expertise."
Conclusion
Coinshares' acquisition of Valkyrie Funds and its ETFs marks a significant step in expanding its digital currency offerings in the US market. The strategic move reflects Coinshares' commitment to becoming a global leader in the digital asset space and providing regulated digital asset products to American investors.
What are your thoughts on Coinshares' acquisition of Valkyrie and its ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
What are the advantages of a gold IRA
It is best to put your retirement money in an Individual Retirement Account (IRA). It will be tax-deferred up until the time you withdraw it. You have complete control over how much you take out each year. And there are many different types of IRAs. Some are better suited for college students. Others are designed for investors looking for higher returns. For example, Roth IRAs allow individuals to contribute after age 59 1/2 and pay taxes on any earnings at retirement. These earnings don't get taxed if they withdraw funds. So if you're planning to retire early, this type of account may make sense.
Because it allows you money to be invested in multiple asset classes, a ‘gold IRA' is similar to any other IRAs. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. For people who would rather invest than spend their money, gold IRA accounts are a good option.
Another benefit to owning IRA gold is the ability to withdraw automatically. This eliminates the need to constantly make deposits. To ensure that you never miss a payment, you could set up direct debits.
Finally, gold remains one of the best investment options today. It is not tied to any country so its value tends stay steady. Even during economic turmoil, gold prices tend to stay relatively stable. Gold is a good option for protecting your savings from inflation.
Should you open a Precious Metal IRA
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. If you lose money in your investment, nothing can be done to recover it. All your investments can be lost due to theft, fire or flood.
This type of loss can be avoided by investing in physical silver and gold coins. These coins have been around for thousands and represent a real asset that can never be lost. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.
Consider a reputable business that offers low rates and good products when opening an IRA. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.
When you open an account, keep in mind that you won't receive any returns until your retirement. Remember the future.
How much should I contribute to my Roth IRA account?
Roth IRAs are retirement accounts where you deposit your own money tax-free. The account cannot be withdrawn from until you are 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. First, you can't touch your principal (the initial amount that was deposited). This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. If you take out more than the initial contribution, you must pay tax.
The second rule states that income taxes must be paid before you can withdraw earnings. Withdrawing your earnings will result in you paying taxes. Consider, for instance, that you contribute $5,000 per year to your Roth IRA. Let's further assume you earn $10,000 annually after contributing. On the earnings, you would be responsible for $3,500 federal income taxes. The remaining $6,500 is yours. You can only take out what you originally contributed.
You would still owe tax on $1,500 if you took out $4,000 of your earnings. In addition, 50% of your earnings will be subject to tax again (half of 40%). Even though you had $7,000 in your Roth IRA account, you only received $4,000.
There are two types if Roth IRAs: Roth and Traditional. Traditional IRAs allow for pre-tax deductions from your taxable earnings. Your traditional IRA can be used to withdraw your balance and interest when you are retired. There are no restrictions on the amount you can withdraw from a Traditional IRA.
Roth IRAs are not allowed to allow you deductions for contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal amount, unlike traditional IRAs. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
Statistics
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
External Links
investopedia.com
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Legal – WSJ
cftc.gov
finance.yahoo.com
How To
3 Ways To Invest in Gold For Retirement
It is crucial to understand how you can incorporate gold into your retirement plans. There are many ways to invest in gold if you have a 401k account at work. It is also possible to invest in gold from outside of your work environment. A custodial account can be opened by a brokerage firm like Fidelity Investments if you already have an IRA. You might also consider purchasing precious metals directly from a trusted dealer if they are not already yours.
These are the three rules to follow if you decide to invest in gold.
- Buy Gold with Your Money – You don't need credit cards, or to borrow money to finance your investments. Instead, put cash into your accounts. This will help you to protect yourself against inflation while also preserving your purchasing power.
- Physical Gold Coins – Physical gold coins are better than a paper certificate. Physical gold coins can be sold much faster than paper certificates. Also, there are no storage fees associated with physical gold coins.
- Diversify your Portfolio – Don't put all your eggs in one basket. By investing in multiple assets, you can spread your wealth. This helps to reduce risk and provides more flexibility when markets are volatile.
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By: Jamie Redman
Title: Coinshares Acquires Valkyrie Funds, Expands Digital Currency Offerings in the US
Sourced From: news.bitcoin.com/coinshares-expands-us-footprint-through-strategic-takeover-of-valkyrie-and-its-array-of-etfs/
Published Date: Fri, 12 Jan 2024 20:00:17 +0000
