Original | Odaily Planet Daily (@OdailyChina)

Author | Nan Zhi (@Assassin_Malvo)

On September 30, the crypto financial services platform Matrixport announced the acquisition of the crypto asset management company Crypto Finance (Asset Management) AG (CFAM) from Deutsche Börse Group here.

In the fifteenth year since the birth of Bitcoin and cryptocurrencies, we have witnessed Bitcoin become the eighth largest asset globally and the approval of Bitcoin spot ETFs. The wave of cryptocurrency market popularization is unstoppable.

The traditional capital brought by Bitcoin spot ETFs and the influx of third-world users into the TON ecosystem reflect the increasing penetration of the crypto industry to a new level. With the overflow of user groups and funds, it is foreseeable that various types of investment and financial management demands will experience a new round of explosive growth with this wave.

On the other hand, governments around the world have not fully embraced the crypto industry, compliance has become a key focus for many countries, and it is also a challenge and strategic point in market competition. Therefore, leading institutions are scrambling for policy advantages and market shares in various regions.

As a licensed and compliant asset management company in Switzerland, the acquisition of CFAM marks Matrixport's successful entry into the pan-European crypto asset management market. Matrixport will leverage CFAM's existing pan-European market access and sales network to provide comprehensive compliant crypto services for qualified institutional and individual investors, underwriting institutions, and retail investors.

1. The Wave of Crypto Popularization and the Rise of Asset Management Demand

According to BCG data, by the end of 2023, the global asset management industry's assets under management (AuM) reached approximately $118.7 trillion, while the global stock market's market capitalization during the same period was $115.0 trillion, indicating the high demand and stable development of asset management in traditional finance.

• Increase in Market Size and Allocation Ratio: The asset volume of the crypto market has risen from $1 billion to the current $2 trillion over the past decade. Before the approval of Bitcoin spot ETFs, the largest GBTC asset management scale was about $20 billion, while the asset management scales of other companies like CoinShares, Bitwise, and 21Shares ranged from hundreds of millions to several billion dollars. Although Bitcoin spot ETFs brought in a net inflow of $19.3 billion, compared to traditional markets, there is still significant room for growth in allocation scale.

• Change in Asset Attributes: As the volume increases, the attributes of leading tokens like Bitcoin and ETH are shifting more from Alpha returns to Beta allocation, with characteristics such as inflation resistance and value storage gradually becoming prominent and valued by people.

• Demand Overflow from User Group Expansion: On the other hand, the number and structure of user groups in the crypto market have undergone significant changes. Traditional asset management giants like BlackRock have begun large-scale layouts after the approval of Bitcoin spot ETFs, attracting a large number of U.S. stock users, while a vast number of users from lower-tier markets, such as Yalafi, have also rushed in with the rise of the TON ecosystem. The substantial increase in user volume has led to further demand for structured products.

IBIT Net Assets (left axis), Bitcoin Price (right axis)

Although the public's acceptance of crypto has made a qualitative leap, there is still a key issue to address before achieving Massive Adoption—compliance. The U.S. SEC has frequently accused multiple crypto protocols and companies of selling unregistered securities, and exchanges are flocking to Dubai and Hong Kong to apply for licenses, all reflecting the trend and necessity of compliance.

Focusing on the pan-European region, the EU has passed and is gradually launching the European Crypto Asset Market Regulation (MiCA), which deeply regulates operating licenses, reserves, and risk control. Due to the introduction of MiCA, Coinbase will delist non-compliant stablecoins like USDT in December in the European Economic Area, Bybit will cease operations in France, and Binance will disable copy trading services for its European users. This indicates that failure to complete compliance in a timely manner will lead to various constraints. Moreover, MiCA will come into full effect in December this year, making compliance urgent for all entities operating in the relevant regions.

2. Acquiring CFAM: Entering the Trillion-Dollar Pan-European Market

Leading Licenses and External Resources

The asset management company CFAM, acquired by Matrixport, was established in 2017. According to FINMA's official data, only 31 entities have been authorized as securities firms, and CFAM is one of them. Additionally, CFAM is the first crypto asset management company licensed by the Swiss Financial Market Supervisory Authority (FINMA), allowing it to sell crypto-related collective investment schemes to qualified institutional and individual investors, underwriting institutions, and retail investors.

On January 1, 2020, Switzerland introduced the Financial Institutions Act (FinIA), requiring all asset management companies to obtain a FINMA license to operate. According to data disclosed by finalix, there are about 2,400 asset management companies in Switzerland, but only 250 successfully obtained approval a year and a half after the regulations took effect. Three years later, by the end of 2023, there were 1,187 approved institutions.

The licenses issued by FINMA to asset management institutions are divided into two categories: “EAM License” and “Collective Asset Manager License”. The former is regulated by agencies outside of FINMA, with relatively lower process, reporting, and auditing requirements, mainly suitable for simple products. The license obtained by CFAM is the latter, directly regulated by FINMA, making it the most comprehensive and stringent license for crypto asset management in the Swiss market, applicable to complex funds for institutional clients, ensuring comprehensive compliance management for complex fund products.

In addition, CFAM is the first member of the Swiss Asset Management Association (AMAS) focused on providing crypto asset management services. It has a deep partnership with APEX Group, a financial service provider with over $1 trillion in asset management scale, possessing the resources and capabilities to quickly create and launch crypto ETPs and AMCs. ETPs are exchange-traded products for cryptocurrencies, while AMCs are actively managed certificates issued by financial institutions as non-public excess return investment strategies.

ETPs are tools that track underlying securities, indices, or other financial products, with the most well-known subclass being ETFs. To use a shopping analogy, users can individually select various fruits like apples and bananas or buy a pre-mixed fruit basket, saving the trouble of selection. ETFs are like this mixed fruit basket, giving users the ability to purchase a bundle of cryptocurrencies. For the crypto industry, the most critical feature of ETPs is that they lower the investment threshold for users, increasing the potential market size by several orders of magnitude. Native cryptocurrency investments require creating crypto wallets, choosing suitable exchanges, and facing potential security risks, while ETPs eliminate these issues. The Bitcoin spot ETF approved in the U.S. this January has seen a cumulative net inflow of $19.36 billion, with a net asset value of $61.89 billion, accounting for 4.7% of Bitcoin's total market capitalization. This demonstrates the wide applicability and large volume of ETP products. The combination of Matrixport's quality products with the vast pan-European market space is expected to bring a new growth curve for crypto assets.

Global Compliance Strategic Layout

It is reported that Matrixport has obtained compliance licenses in multiple regions, including a trust license in Hong Kong and a money service license in the U.S. The acquisition of CFAM is an important step in Matrixport's global compliance strategic layout. As the first crypto asset management company authorized by FINMA, the acquisition of CFAM marks Matrixport's successful entry into the Swiss and European crypto asset management market.

First, according to data disclosed by the Swiss government in 2021, the total assets of Swiss pension funds reached 1,159 billion Swiss francs (approximately 1,350 billion USD). With CFAM's FINMA license, Matrixport's products are expected to officially enter this market.

Furthermore, CFAM also possesses access to the pan-European market and corresponding sales networks. After the acquisition is completed, Matrixport will be able to provide comprehensive crypto asset management services to qualified institutional and individual investors, underwriting institutions in the relevant regions, and its ETP products can be sold through third parties, further expanding the promotion scope of its products.

Resource Integration, Reaching New Heights

• Product Iteration: Over the past year, CFAM has expanded its product line (6+1 product lines), covering retail and qualified investors, including the first cryptocurrency mutual fund regulated by FINMA, the Crypto Market Index Fund, the low-risk hedge fund Systematic DLT Fund, and the CFMOM ETP aimed at high-growth users. Additionally, CFAM has partnered with APEX Group, which manages over a trillion in assets, to design and launch customized crypto strategy products for other asset managers, banks, and family offices through white-label services.

• Talent and Sales Resource Integration: The original CFAM team has over 20 years of experience in the asset management industry. After the acquisition, the original organization will be renamed and merged into Matrixport Asset Management (MAM). According to the group's plan, Matrixport will complete the asset restructuring of CFAM by the fourth quarter of 2024 and quickly invest in the research and development testing of new products, achieving a self-operated Multi-Strategy fund. This will further enrich the asset management product line based on the existing funds acquired, providing innovative and compliant crypto asset management services and solutions for qualified institutions, individual investors, underwriting institutions, and retail investors in the pan-European market.

3. Matrixport Analysis: A Global One-Stop Crypto Financial Service Platform

Clearly, the acquisition of CFAM holds significant strategic importance for Matrixport. So what different investment opportunities and experiences will users or investors gain from this?

With CFAM's access to the pan-European market, for users in the pan-European region, purchasing ETP products through pan-European exchanges or national stock exchanges is now only a matter of certain regulatory processes. Accessing, obtaining, and investing in various high-quality products under Matrixport will become more convenient.

For Matrixport's existing global users, with the influx of new funds into the pan-European region, trading activity and capital depth will see significant growth, further enhancing the liquidity and stability of Matrixport's products. At the same time, after the integration of CFAM's talent, products, and resources with Matrixport, the richness of the product matrix and user experience is expected to improve, providing global users with comprehensive choices and high-quality products.

So specifically, what product systems and services does Matrixport offer?

Detailed Products and Services

Founded in 2019, Matrixport is a global one-stop crypto financial service platform with a fund management and custody volume of $6 billion.

Matrixport provides a rich variety of financial products for individuals, institutional investors, and ecosystem project parties, ranging from entry-level products like demand deposits and fixed-income investments to basic financial products like Shark Fin and Trend Smart Yield, as well as advanced products like Dual Currency, Seagull, and Snowball. For users looking to participate in on-chain yield activities, Matrixport also offers proxy on-chain services such as ETH staking and Restaking. Whether you are a newcomer to the industry, an independent whale, or a large institution, regardless of risk preference, you can find high-quality, high-capacity financial services that meet your needs at Matrixport.

Matrixport not only aligns its product offerings with the needs of a wide range of users, but also actively practices a global compliance development strategy. For example, in terms of licenses, Matrixport has obtained compliance licenses such as a trust company license and lender license in Hong Kong, a money service license in the U.S., and is also a compliant authorized representative company of the UK's FCA and a member of Switzerland's FINMA SRO-VFQ.

The following image shows some examples of Matrixport's products, covering multi-level structured products needed by users with different risk preferences. Low-risk preference users can choose basic products like demand deposits, Shark Fin, and Trend Smart Yield, while advanced users can also participate in advanced structured products based on options like Snowball and Seagull at Matrixport.

Matrixport has also launched more robust "Treasury Yield" products through its brand Matrixdock, introducing synthetic assets STBT based on short-term U.S. Treasury bonds through transparent RWA on-chain services, allowing holders to enjoy risk-free returns from U.S. Treasuries. Additionally, Matrixdock launched a tokenized gold product, XAUm, in September, targeting the "next new asset class" with a scale of over $10 trillion.

Matrixport's one-stop platform application is now available for multi-end download. Users can download iOS, Android, and other versions through the official link (click to jump). Users can easily find the required financial products through the homepage navigation, complete the deposit and corresponding level KYC, and quickly and conveniently start investing and managing assets.

In addition to investment products, Matrixport offers various sharing channels for investment insights, aiming to provide users with cutting-edge, professional investment references. At the same time, Matrixport will regularly provide important events, market insights, and structured investment strategies through the official Telegram channel and official X account.

Conclusion: Entering a New Stage of Global Compliance and Development

The expansion of the crypto industry has become an unstoppable trend. With the arrival of interest rate cuts in the U.S., the volume of capital outflow will continue to rise. During this round of interest rate cuts, the scale of crypto asset management may continue to grow by several orders of magnitude. Through this acquisition of CFAM, Matrixport officially enters the pan-European market, taking a key step in its global compliance strategy, and is expected to gain an advantage in the wave of asset management, initiating a new round of explosive growth.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。