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Cryptocurrency data provider Kaiko acquires Vinter, eyes European crypto ETP growth
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Global Banking & Finance Review®
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By Lisa Pauline Mattackal
(Reuters) – Cryptocurrency data provider Kaiko said on Tuesday it is acquiring European crypto index provider Vinter in a bet on growth in the European digital asset market.
The deal comes as some analysts expect significant growth in the European crypto ETP market, which remains significantly smaller than the U.S.
“It’s a clear bet on the European ETP market…,” said Ambre Soubiran, CEO of Kaiko.
Vinter, which supplies digital asset indices and reference rates for several Europe-listed ETPs, including those from 21Shares and Sygnum Bank, marks Kaiko’s third acquisition to date.
Digital asset investment products listed in Germany, Sweden and Switzerland collectively manage approximately $13.64 billion in assets, according to data from CoinShares. In contrast, U.S. products have an AUM of about $88.78 billion.
Kaiko plans to expand its product offerings to provide independent data for asset managers, derivatives traders, and exchanges following the acquisition.
The cash and equity deal values Kaiko at $200 million post-acquisition, though the company did not disclose the Vinter deal value.
The acquisition follows recent industry moves, including Bitwise Asset Management’s purchase of European crypto ETP issuer ETC Group in August, and trading platform Robinhood Markets’ agreement to acquire European exchange Bitstamp for $200 million in June.
The cryptocurrency market has surged on expectations that digital currencies will boom in a favorable regulatory environment following the election of Donald Trump as U.S. president and of pro-crypto candidates to Congress, with bitcoin nearing the $90,000 mark.
“Trump’s victory is seen as a very good sign for crypto,” Soubiran said, adding Kaiko also plans to also target the American crypto market “more aggressively.”
(Reporting by Lisa Mattackal in Bengaluru; Editing by Tasim Zahid)
An Exchange Traded Product (ETP) is a type of security that tracks an underlying asset or index. ETPs are traded on stock exchanges and can include ETFs, ETNs, and other similar products.
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control. This can be done to expand market reach or enhance capabilities.
Asset management involves managing investments on behalf of clients to achieve specific financial goals. It includes strategies for maximizing returns while minimizing risks.
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