This week began with news of another step towards the expansion of US financial management companies into the European market. On Monday, Bitwise, one of the largest crypto index fund managers in the United States, announced the acquisition of a British ETC group.
Bitwise CEO Hunter Horsley justified the purchase by stating that it would allow the company to serve European clients and expand its product offering. The announcement prompted analysts to comment on the growing popularity of the European cryptocurrency market on the international market.
Many wondered about transactions similar to this acquisition and their possible consequences. Below, we offer the details of the major transaction that recently preceded the acquisition of Bitwise and analyze the market reaction.
The Inspiration
Monday’s announcement reminded many of a similar event starring Robinhood, another American financial services company, and Bitstamp, a European platform. Sold for 179 million euros in June 2024, Bitstamp has long been a popular option for investors looking to exchange euros for cryptocurrencies.
The broker offers various products, including Bitcoin, Ethereum (ETH), Algorand, Ripple, Litecoin, and other cryptocurrencies. Given Bitstamp’s status as the oldest operating crypto exchange in Europe, the news of its acquisition by Robinhood captured the attention of many investors.
Both the attention and the purchase proved lucrative for Robinhood. 24 hours after announcing the purchase of Bitstamp, the company’s shareholders saw their shares increase in value by 6.5%. Two months later, the company’s customer base had grown by 70,000.
Possible consequences
The purchase of Bitwise may have been inspired by the success of Robinhood’s expansion into the European market. Whether the company will be as successful as its competitor remains to be seen. Since the announcement of the purchase of the ETC group, Bitwise’s shares have risen by 2.30%. However, it is still too early to assess the growth of its customer base.
Many believe that Bitwise has remarkable growth potential, given its latest acquisition and the partnerships it has already established with market giants such as ByBit. Considered a trustworthy company, ByBit offers a wide range of services, such as staking, buying, and selling.
European investors frequently use the platform to buy products such as Dogecoin, Solana, Tether, Shiba Inu and more than 200 crypto options at competitive prices.
Gemini
- Over 100 cryptocurrencies
- Over 20 trading pairs
- Highly reputable app
Gemini
