US-based digital asset investment management firm Wave Financial has purchased a minority stake in Swiss crypto fund manager Criptonite Asset Management.

The deal, financial details of which were not divulged, represents the initial move of Wave Financial to fully acquire the Swiss Financial Markets Supervisory Authority (FINMA) regulated firm in the future.

Pending regulatory nod, the deal is anticipated to be closed by the end of this year.  

The deal builds on the existing collaboration between the two firms, which started in June last year.

It also follows the introduction of various actively managed certificates (AMCs) of Wave Financial’s digital asset funds in Europe by Criptonite. The launch included Wave Financial’s Wave Bitcoin Income & Growth as well as NFT funds.

With the latest acquisition, Wave Financial aims to tap the growing demand for regulated digital asset investment funds throughout Europe.

Wave Financial president international Matteo Dante Perruccio said: “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.

“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.”