US-based digital asset manager Wave Financial has made its debut in Europe by acquiring a minority stake in Swiss crypto firm Criptonite Asset Management. This move marks the beginning of what Wave Financial intends to be a full acquisition, anticipated to conclude by the end of 2022, pending regulatory approvals.
Since 2021, the two companies have maintained an informal partnership, with Criptonite distributing Wave Financial’s bitcoin and NFT funds across Europe.
This acquisition positions Wave Financial to capitalize on the growing interest in digital assets among institutional investors in Europe, particularly in regulated firms like Wave and Criptonite, which hold licenses from the SEC in the US and Finma in Switzerland, respectively.
According to David Siemer, CEO of Wave Financial, this acquisition is likely the first of many. He stated, “This bear market is an opportunity for us to continue to grow and expand, both organically and by acquiring crypto asset managers.” Siemer further mentioned that Wave is in talks with various asset managers, exchanges, and lenders to broaden its presence in Europe and beyond.
While institutional investors have previously been cautious about cryptocurrencies, they are showing increased interest in digital assets and tokenized funds, particularly when regulated asset managers are involved. Wave Financial isn’t the only firm pursuing such acquisitions; in July, global investment firm Schroders acquired a minority share in Forteus, an asset manager specializing in blockchain and tokenized assets.