Wave Financial acquires FINMA regulated crypto firm Criptonite

SEC regulated Waves Financial plans to use the acquisition to expand its reach across Europe and globally.

Wave Financial, a digital asset investment manager regulated by the US Securities and Exchange Commission (SEC), has acquired Geneva based crypto asset manager Criptonite Asset Management, according to a press release shared with CoinJournal.

Per the announcement, the acquisition is subject to regulatory approval. However, Los Angeles-based Wave Financial has taken a minority stake in Criptonite and expects to complete a full acquisition – the company’s first in Europe – by the end of the year.

The acquisition comes after an initial strategic partnership between the two companies in 2021.

Demand for managed digital asset funds

Criptonite is regulated by Swiss Financial Markets Supervisory Authority (FINMA) and its managed digital assets-focused products are targeted at institutional and accredited investors only.

Europe has seen this group of investors increasingly look for exposure to the crypto investment asset class, particularly around digital asset funds.

The demand has also seen multiple offerings, including crypto exchange-traded funds (ETFs) and exchange-traded products (ETPs), hit the European market. On the growing list of providers are companies such as ETC Group, Fidelity International, Grayscale and Valour Inc.

By acquiring Criptonite, Wave is positioning itself towards curving a share of the market to provide its digital asset funds and products to qualified investors.

Matteo Dante Perruccio, President International at Wave Financial commented:

“We have seen unprecedented demand from institutional and other accredited investors for professionally managed digital asset funds in Europe. There seems to be a flight to quality taking place, so it makes sense to take our relationship with Criptonite to the next level.”

According to Perruccio, Wave Financial’s acquisition of the Swiss firm is its first outside the United States. However, the company plans to seal further partnerships and acquisitions across the globe to bring its diverse products and solutions to investors.