Wave Financial, an SEC regulated digital asset investment management company, has acquired a minority stake in FINMA regulated Swiss based crypto investment manager Criptonite Asset Management. The fund manager said this is the first step of a planned full acquisition, subject to regulatory approval, expected to be completed by the end of 2022.
The acquisition follows the strategic partnership between the two companies back in 2021 and Criptonite’s launch of several Actively Managed Certificates (AMCs) of Wave Financial’s flagship digital asset funds in Europe, including the Wave Bitcoin Income & Growth and NFT funds. By acquiring Criptonite, Wave will be able to take advantage of increasing demand for regulated digital asset investment fund products in Europe.
“We have seen unprecedented demand from institutional and other accredited investors for professionally managed digital asset funds in Europe,” said Matteo Dante Perruccio, President International at Wave Financial. “There seems to be a flight to quality taking place, so it makes sense to take our relationship with Criptonite to the next level. They share our strong focus on risk management and compliance and have been a fantastic partner over the past twelve months and we are excited to be solidifying that relationship.”
The acquisition is Wave Financial’s first outside the US, but the firm said it would not be their last as and that they are actively looking for other partners to bring their diverse set of digital asset funds and solutions to accredited investors around the world.
Bear market opportunity for Wave Financial?
As an SEC regulated digital asset management firm, which has demonstrated strong risk management in successfully navigating the recent market disruptions, Wave is in the perfect position to leverage its strong balance sheet. “This bear market is an opportunity for us to continue to grow and expand, both organically and by acquiring crypto asset managers,” said David Siemer, Co-Founder and CEO at Wave Financial. “Wave is in discussions with several asset managers, exchanges and lenders, as we look to expand our footprint in Europe and beyond.”
The deal opens a new era for Cryptonite AM, in which the fund manager will have the opportunity to propose an expanded investment offering. Wave’s client references and investment talents could be the answer to strict requirements of the company’s existing clients and prospects.
“We come with a wealth and asset management DNA, setting ambitious growth targets, knowing that our common solution is here to bring unique comfort to investment professionals pressured in providing crypto investment solutions to their own clients,” said Florian Rais, Founder and CEO of Criptonite AM.
