SEC regulated digital asset investment management company Wave Financial has acquired a minority stake in Geneva-based crypto specialist Criptonite Asset Management.
The company says it is the first step of a planned full acquisition, subject to regulatory approval, expected to be completed by the end of 2022.
The move 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 of 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.
“This acquisition is Wave Financial’s first outside the US, but will not be our last as we are actively looking for other partners to bring our diverse set of digital asset funds and solutions to accredited investors around the world.”
David Siemer, co-founder and CEO at Wave added: “This bear market is an opportunity for us to continue to grow and expand, both organically and by acquiring crypto asset managers. Wave is in discussions with several asset managers, exchanges and lenders, as we look to expand our footprint in Europe and beyond.”
Florian Rais, founder and CEO of Criptonite AM said the acquisition would open up a new era for his business.
“Wave’s client references and investment talents is certainly an answer to strict requirements of our own clients and prospects,” he said.
“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.”