Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Online Funding / Investing Portals
SEC Reg CF Data Falls Short, Says CCA
Reg CF Data | June 5, 2025
Image: Freepik/rawpixel.com
Crowdfund Capital Advisors Say U.S. Crowdfunding Data Misses More Than 50% of Campaigns
On May 28, 2025, the U.S. Securities and Exchange Commission (SEC) released new data on Regulation Crowdfunding (Reg CF) as part of a broader update on capital formation and private funds. The Reg CF analysis studied regulation crowdfunding activity between 2016 and 2024 and reported that 8,492 offerings were launched by 7,134 issuers, excluding withdrawn campaigns.
But there's a data tracking issue with the SECs data. Of a total of 8,492 campaigns, only 3,869 of these crowdfunding offerings were reported as proceeds to the SEC, totaling about $1.3 billion. That means less than half of all campaigns included final results in the public record.
See: Blossom Sets Canadian Equity Crowdfunding Record
Even the SEC admits the numbers are incomplete in the report:
“This is likely to be a lower-bound estimate due to variance in Form C-U filing practices.”
This data gap has real consequences because it's harder for regulators, investors, and anyone interested in tracking crowdfunding capital flows, as industry evolves.
Sherwood “Woodie” Neiss, principal at Crowdfund Capital Advisors (CCA) and long time advisor to NCFA Canada, says this is a structural issue.
“The SEC’s numbers are based on what companies file, not what they actually raise. Most offerings don’t report final results, so the public sees less than half the full picture.”
To solve this problem, CCA built CCLEAR, a real time database that tracks every Reg CF campaign in the U.S. Instead of relying on incomplete filings, CCA collects live data daily from every platform and tracks/records the life of each campaign from launch to close.
5 Key Insights from CCLEAR's Latest Dataset (Jun 2024 to May 2025)
1. Capital Is Moving Toward Real Economy Sectors
See: Equity Crowdfunding Breaks Records in Canada
Reg CF investors are putting more money into healthcare, energy, industrial and manufacturing. Sectors like tech, financial services, and real estate slowed down, while consumer categories like fashion and sports grew modestly.
2. Capital Flows Differ by City
Unlike the SEC who tracks capital by state, CCLEAR tracks it by postal code so it's at a more granular city level, which helps government, funders, and issuers gain deeper insights into crowdfunding capital flows and the startup ecosystem. During the reporting period, Austin, Miami, and New York City experienced growth, while San Francisco and Los Angeles saw declines.
3. Most Campaigns Raise Half Their Total Early
Instead of only reporting how much a campaign raised at the end, CCLEAR tracks activity daily.
- Campaigns on average raise about 50% of their total by Day 10
- The remaining investment trickles in, with a (small) boost near the deadline. This confirms how important it is for founders to start strong and market early.
4. Investors Prefer Simple Securities
This type of platform data is important because it helps manage expectations and lawyers can better align campaign structures with investor interest.
See: CCA Report: State of Investment Crowdfunding 2025
- Common shares and SAFEs make up most of the total raised
- Preferred shares are used more often in mature offerings
- Convertible notes and revenue shares are smaller but growing segments
5. Fewer Investors Are Writing Bigger Checks
The number of investors has gone down but the average check size is rising, signalling that a smaller group of confident investors are staying engaged:
- In 2021, over 515,000 people invested through Reg CF but in 2025, that number dropped to about 233,000
- The average investment increased from $689 in 2020 to more than $1,700 in 2024, and remained steady in 2025
Why It Matters
Regulation Crowdfunding is growing fast, but the SEC only captures less than 50% of the the funding actually raised because they rely on form filings which mostly aren't filed, as their data source. Thankfully, tools like CCA's CCLEAR exist with real time tracking daily at granular levels of a campaign, so markets can understand where the capital is going, who is funding, and how best to optimize the structure of the funding rounds.
See: CSA Expands LIFE Exemption to Boost Public Capital Raising
The implications of the SECs data reporting gap has implications that Canada can learn from as it reviews its own exempt market data practices. Platforms, regulators, and ecosystem leaders need better data infrastructure to best support early stage capital formation. Transparent, real time data is the foundation of market trust, policy design, and smarter investor participation, and is essential.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
|---|---|---|
 |  |  |
Strategy Buys More BTC as Canadian Crypto ETFs Grow
Bitcoin | May 27, 2025
Image: Freepik
Strategy Acquires 4,020 New Bitcoin as Canadian Crypto ETFs Gain Strength
On May 26, 2025 via press release, billionaire Michael Saylor's company, now rebranded as Strategy, announced the acquisition of an additional 4,020 Bitcoins between May 19 and May 25 for the total price of approx $427.1 million, showing growing corporate and institutional demand and confidence in digital assets.
See: National Bank Doubling Down on MicroStrategy’s Bitcoin Boom
This latest purchase brings Strategy's total bitcoin holdings to 580,250 BTC, bought at an average price of $69,979 per coin, and aligns with recent federal policy shifts, including the U.S. governments 2025 creation of a Strategic Bitcoin Reserve.
BTC vs Strategy Performance Comparison
According to Portfolioslab where you can compare returns, Strategy's stock (formerly MSTR) has outperformed Bitcoin over the past year, with a 1 year return of +119.31% versus Bitcoin's +59.13%. However, Bitcoin maintains a higher 10-year annualized return at 84.59% compared to Strategy’s 35.83%. Strategy’s higher volatility and risk metrics reflect its leveraged exposure to Bitcoin.
As of May 27, 2025, the Crypto Fear and Greed Index stands at 74 (Greed), indicating positive investor sentiment and the potential for price corrections if optimism overheats.
AI and Enterprise Innovation
On May 7, 2025, at Strategy World 2025, the company introduced several new AI and data tools aimed at helping businesses manage and use their data more effectively. These included Strategy Mosaic™, which helps companies organize and control data across different platforms like Tableau and Google Sheets, and Auto 2.0, a faster, more intelligent AI engine built to handle both structured and unstructured data through chat-like conversations.
See: What Bitcoin Pizza Day 2025 Still Teaches Us 15 Years Later
Strategy also launched Strategy One Standard Edition, a version of its platform for smaller organizations that want advanced analytics without a large IT setup. Chief Technology Officer Ponna Arumugam said their new AI system is built to learn, adapt, and scale as businesses grow. Full press release here, with livestream access on YouTube.
Canadian Crypto ETFs on the Rise
At the same time, Canadian crypto ETFs are gaining momentum with investors who are seeking regulated exposure to crypto, given global volatility and policy shifts. Canadian-listed ETFs continue to expand, led by the Purpose Bitcoin ETF (BTCC) with C$993.5 million in AUM and the Fidelity Advantage Bitcoin ETF (FBTC) with C$1.257 billion. Investors benefit from secure, regulated access to cryptocurrencies without needing to manage private wallets.
| ETF Name | Ticker | AUM (CAD) | Management Fee | Notes |
| Purpose Bitcoin ETF | BTCC | C$993.5M | 1.5% | First physically settled BTC ETF |
| CI Galaxy Bitcoin ETF | BTCX.B | C$781.9M | 0.4% | Low-fee Bitcoin exposure |
| Fidelity Advantage Bitcoin ETF | FBTC | C$1.257B | 0.4% | Cost-effective BTC ETF |
| 3iQ CoinShares Bitcoin ETF | BTCQ | C$361.6M | 1.0% | BTC price tracking exposure |
| CI Galaxy Ethereum ETF | ETHX.B | C$461.9M | 0.4% | Ethereum exposure |
| Evolve Bitcoin ETF | EBIT | C$254.5M | 0.75% | Uses CME Bitcoin Reference Rate |
| Purpose Ether ETF | ETHH | C$130.7M | 1.0% | Physically settled ETH ETF |
| Purpose Bitcoin Yield ETF | BTCY | C$126.5M | 1.1% | Covered call strategy for BTC |
| Evolve Cryptocurrencies ETF | ETC | C$61.35M | 0.75% | Mixed BTC and ETH exposure |
| 3iQ Ether Staking ETF | ETHQ | C$49.6M | 1.0% | ETH price and staking exposure |
See: GENIUS Act Advances as Bitcoin Hits Record High
Outlook
Strategy's latest addition to it's deepening BTC position, and the growth of Canadian crypto ETFs highlight the fact that crypto is constantly becoming more institutionalized. Canada’s proactive regulatory stance continues to make it a hub for compliant crypto investment products.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
Are Synthetic Indices Manipulated? Separating Fact from Fiction
May 21, 2025
Image: Freepik/DC Studio
Synthetic indices are a new phenomenon in the world of online trading that has drawn interest from both novice and experienced traders. These digital assets provide a distinctive and dynamic trading experience by simulating actual market conditions. However, as their popularity increases, so does the number of questions. The most important one is "Are synthetic indices manipulated?" How much real power do brokers have over the results, if any at all? In a market unrelated to tangible things, it's a legitimate worry. This article delves into how you can ascertain whether synthetic indices are as fair as conventional trading instruments or just a new kind of risk wrapped in tech-savvy terminology.
Here are facts about synthetic indices:
Not Predicated on Actual Assets
The fact that synthetic indexes are not based on actual assets is one of the primary ways they differ from conventional financial instruments. These algorithms replicate the movement and volatility of actual markets, but they are not directly related to economic indicators, company performance, or geopolitical events. Some traders doubt the validity of their price behavior because they are simulated. Given that the market movements are artificial, you may well wonder, "Are synthetic indices manipulated?"
Regulated Volatility
The foundation of synthetic indexes is the idea of controlled volatility. The degree to which the price is anticipated to change during a specified period is determined by the predefined volatility level of each index, such as Volatility 10, 25, 50, or 75. On the positive side, controlled volatility lets you create exact strategies since it offers a level of predictability that real-world assets do not. Conversely, this leads to the question of whether synthetic indices are manipulated, and it is a valid one.
Regulation and Reliance on Brokers
Regulation and broker dependency are important considerations when asking, "Are synthetic indices manipulated?" As a result of this arrangement, traders rely significantly on the broker's transparency and reliability. Concerns regarding market manipulation can be reduced if the broker conducts business fairly and uses certified algorithms that have undergone third-party audits. The answer to the question of "Is synthetic indices gambling?" primarily depends on the broker's policies. You can check over here to explore synthetic indices.
Round-the-clock Availability
Synthetic indices have the unquestionable advantage of being accessible around the clock, in contrast to traditional markets that have set operating hours. Traders with erratic schedules or those in different time zones still have easy access. Whatever time works best for you, you can trade on the weekend, at midnight, or during your lunch break. This feature, nevertheless, also heightens worries about possible manipulation. Every tick in these indexes is produced within the broker's ecosystem because they are not dependent on outside variables or actual market hours. This brings up the question of whether synthetic indices are manipulated.
No problems with spills or liquidity
Slippage and liquidity are ongoing issues in traditional markets. Because the market is mimicked, liquidity and slippage are not as big problems with synthetic indexes. The algorithm is followed to execute each order, guaranteeing a steady and reliable trading experience.
See: Fidelity Report Insights on Digital Assets in 2025
However, the lack of friction in the actual world occasionally prompts doubters to ask themselves, "Are synthetic indices manipulated?" This is especially the case when results seem unduly controlled or smooth. Understanding that synthetic indices are distinct, not better or worse.
Conclusion
Are artificial indices, then, manipulated? There is more to the answer than a simple yes or no. To answer the question, "Are synthetic indices manipulated?" it's critical to realize that trading in any way carries some level of risk. However, with the right broker, discipline, and understanding, trading on synthetic indices doesn't have to be a gamble. As with any other market, whether genuine or simulated, synthetic indices present a distinct combination of opportunity and risk.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
Coinbase Breach Days Before S&P 500 Listing Milestone
Crypto | May 20, 2025
Image from Coinbase announcement
$400M Coinbase Hack Exposes Risk Days Before S&P 500 Milestone
Just days before Coinbase is set to become the first crypto-native company added to the S&P 500, the largest crypto exchange in the United States disclosed a serious security breach on May 15, 2025 that could cost up to $400 million in damages and reimbursements. This is a growing vulernability in fintech and it's not related to flawed code or a broken firewall, but people on the inside working for the company.
Extortion and Coinbase's Response
On May 11, attackers sent Coinbase a ransom demand for $20 million in Bitcoin, but Coinbase refused to pay. Instead, they issued a public statement offering a $20 million bounty for information leading to the attackers’ arrests. In an SEC filing, Coinbase estimated that the financial cost of the data breach hack would be between $180-400 million for 'remediation costs and voluntary customer reimbursements'.
According to Coinbase, the attack began when 'rogue overseas support agents' (aka contracted customer support workers) were bribed by criminals. The corrupt insiders granted access to Coinbase’s internal systems, allowing attackers to gather customer names, emails, addresses, phone numbers, and even photos of passports and driver’s licenses.
See: Coinbase Buys Deribit for $2.9B to Lead Crypto Derivatives
The Verge also confirmed that some impacted customers lost funds after being tricked into sending crypto to the attacker’s fraudulent wallet addresses. Attackers used their personal data to impersonate Coinbase staff to target the victims. Coinbase has committed to paying them back.
Coinbase has since fired all of the compromised support workers and launched a new U.S.-based customer service hub. Law enforcement investigations are ongoing.
Industry Lessons
Outsourcing is an added risk given that lower paid overseas support agents with access to internal back-end systems can be bribed. Attackers are looking for customer data to support their social engineering scams to defraud victims. Cybersecurity must be approached beyond just technical risks, especially given that insider risks are often overlooked when developing compliance and risk mitigation programs.
Outlook
Coinbase’s inclusion in the S&P 500 took place on Monday May 19, 2025, marking a significant milestone for the crypto sector. It is replacing Discover Financial Services, which is being acquired by Capital One. According to Ainvest, moving Coinbase to the S&P will trigger up to $16 billion in inflows from index-tracking funds and institutional investors.
See: The Day the Platform Went Dark. A Cyber Resilience Story
However, the breach overshadows the achievement, now facing lawsuits from affected customers and working to repair trust in its rand. Just at the moment of unprecedented visibility.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
CSA Expands LIFE Exemption to Boost Public Capital Raising
Capital Raising | May 19, 2025
Image: Freepik/rawpixel.com
CSA Expands Capital Raising Options for Listed Issuers, Challenging Traditional Channels
On May 14, 2025, the Canadian Securities Administrators (CSA) announced that listed companies (public issuers) can now up to a maximum of $50 million over 12 months, directly from the public without a prospectus or dealer involved. This allows listed companies to bypass both the exempt and traditional public markets by opening up a new direct-to-retail financing path that will impact how early stage public companies raise funds in Canada.
So as of today, listed companies on Canadian exchanges can use the LIFE exemption (amended within National Instrument 45-106 Prospectus Exemptions) to raise the greater of $25 million or 20% of their market capitalization, up to a maximum of $50 million within a 12-month period. This is an increase of 5 times the previous $10 million cap.
LIFE allows any investor including accredited, institutional and retail now too, to participate in these direct to public offerings, and is the first capital raising exemption in Canada that allows deals that are exempt from prosectus requirements to be made available to the general public by listed companies.
See: CSA’s 2024 Investor Index. What Fintechs Need to Know
Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission:
“This change reflects our ongoing work to support the Canadian capital markets to make it more efficient and cost-effective for companies to raise capital and grow in Canada. We are committed to a Canadian regulatory environment that is responsive to the changing needs of market participants, while upholding strong investor protections.”
How LIFE Disrupts Traditional Capital Formation
Although the LIFE exemption launched in 2022, the $10 million funding cap restricted its uptake which left most small-cap issuers to continue to rely on private placements or brokered prospectus offerings. The May 2025 expansion now gives public companies in sectors like tech, mining or cleantech, the option to use LIFE as a faster, cheaper alternative to dealer-broker facilitated capital raises.
See: Equity Crowdfunding Breaks Records in Canada
These public companies will no longer be required to go through investment dealer syndicates or use the public exchange order book to issue securities. Instead, LIFE now allows them to offer subscriptions directly to investors with shares becoming freely tradable shortly after issuance.
New Service Model Opportunities
These LIFE exemption changes could trigger the emergence of new service models. Equity crowdfunding platforms like FrontFundr and Equivesto, which traditionally serve private companies, could evolve to support LIFE offerings by listed issuers through digital subscription tools, onboarding workflows, and marketing campaigns.
Legaltech startups are automating regulatory filings, while investor relations and compliance firms are helping issuers engage retail audiences across digital channels. For both investment crowdfunding firms and traditional dealers, the challenge is the same, which is to adapt to a decentralizing capital raising environment or risk losing relevance. Companies that offer retail services, pre-during-post engagement will be well positioned to nurture and capture this emerging deal flow.
Implications for Stakeholders
Public issuers will potentially benefit from faster and cheaper access to capital. Retail investors will now have access to public placements, which were once reserved for investment syndicate insiders. Dealers will face growing pressure to redefine their role. Exchanges will likely see reduced transparency during capital formation cycles. Regulators will need to incorporate more regulatory tech (RegTech) tools to improve oversight as direct to retail exposure grows.
See: How Fintechs Are Unlocking Value in Private Markets 2024
When the original LIFE exemption launched, some investor protection advocates were concerned about unsophisticated investors (aka retail investors) would be at greater risk without dealer due diligence or a prospectus, such as an increase in pump and dump schemes, and price inefficiencies.
Outlook
The expanded LIFE exemption democratizes early stage investment for public issuer but it also removes traditional safeguards (ie., gatekeepers). Whether or not this reform improves market participation or weakens investor confidence will depend on how well stakeholders adapt to their new reality. With numerous of modernized fintech, legaltech, and wealthtech platforms existing today, the future of digital-first public financing (dealer optional) could very well be led by an army of retail investors who have been locked out of high growth placement opportunities for too long.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
Crypto.com Canada Gains Canadian Regulatory Approval
Crypto | May 15, 2025
Image from Crypto.com Canada website
Crypto.com Canada Receives Restricted Dealer Registration to Continue Serving Customers
On May 12, 2025, Crypto.com Canada announced that on May 8 they received a restricted dealer registration across all Canadian provinces and territories, allowing the platform to continue offering crypto asset products and services while it works toward full investment dealer registration and CIRO membership.
This regulatory milestone aligns with Crypto.com’s earlier commitment to the Canadian Securities Administrators and Ontario Securities Commission in August 2022, when it became the first crypto trading platform to sign a Pre-registration Undertaking (PRU). The PRU was created to provide a temporary path for firms to continue operations while meeting Canada’s robust regulatory standards.
See: Stablecoin Payments Have Wings – Are You Ready?
Eric Anziani, President and Chief Operating Officer at Crypto.com:
“We have strong protocols for our Canadian operations which were put in place or strengthened during the course of the registration process and are designed to enhance the protection of our customers and their asset. We have invested heavily in our compliance infrastructure around the world, and specifically in relation to Canada, because we want our customers to have greater peace of mind knowing that they are dealing with a regulated firm in Canada.”
Crypto.com Custody Trust Company (chartered trust company licensed in New Hampshire) will be the primary digital asset custodian for Canadian clients.
According to Joe Anzures, President of the custody unit, “Crypto.com Custody Trust Company looks forward to providing secure custody services to the Canadian market and to registered cryptocurrency trading platforms who will operate in accordance with the high standards established by Canadian securities regulators.”
See: Robinhood Acquires WonderFi for C$250M
Crypto.com’s Canadian registration adds to a growing global portfolio of licenses including:
- MiCA license in the European Union
- Money Transmitter Licenses (MTLs) in multiple U.S. states
- Designated Contracts Market (DCM) and Derivatives Clearing Organization (DCO) status in the U.S.
- Major Payment Institution (MPI) license in Singapore
- Electronic Money Institution (EMI) license in the UK
- Virtual Asset Service Provider (VASP) license in Dubai
Outlook
Crypto.com’s restricted dealer registration highlights regulatory progress and a maturing market in Canada’s crypto sector. As more platforms become licensed and registered to operate in Canada both retail and institutional clients will benefit from more competition and improved confidence and safeguards. It also shows that top global crypto players are willing to meet Canada's high compliance standards, if there is a clear path to registration and market opportunities.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
Robinhood Acquires WonderFi for C$250M
Crypto M&A | May 13, 2025
Image from announcement Roinhood to acquire WonderFi
Robinhood Enters Canada Through Regulated Crypto Channels
Robinhood Crypto announced on May 13 that it will acquire Canadian fintech WonderFi Technologies for C$250 million (US$179 million) in an all-cash deal, giving it immediate access to Canada’s regulated crypto trading market.
WonderFi shareholders will receive C$0.36 per share in cash, reflecting a 41% premium to the May 12 closing price and a 71% premium to the 30-day volume weighted average.
See: WonderFi Faces Leadership Challenge in Boardroom Battle
The purchase includes WonderFi’s flagship platforms, Bitbuy and Coinsquare, which combined hold over C$2.1 billion in assets under custody and offer crypto trading, staking, and custody services to millions of Canadian users.
The deal is structured as an arrangement under the BC Business Corporations Act and is expected to close in the second half of 2025, subject to court, regulatory, and shareholder approvals.
Johann Kerbrat, Senior Vice President and GM of Robinhood Crypto:
“WonderFi has built a formidable family of brands serving beginner and advanced crypto users alike, making them an ideal partner to accelerate Robinhood’s mission in Canada.”
Ahead of launching or acquiring a crypto trading platform in Canada, Robinhood opened a Toronto headquarters office in 2024 with 140+ staff focused on infrastructure engineering. The WonderFi acquisition allows Robinhood to offer crypto products in a regulated market while positioning for broader retail expansion.
See: Robinhood Acquires AI Platform Pluto Capital Inc
Dean Skurka CEO of WonderFi:
“WonderFi and Robinhood are united in our visions of making crypto accessible and bringing more people into the crypto space.”
Why It Matters
Could Robinhood's acquisition of WonderFi ignite more cross border fintech consolidation in Canada? It will definitely bring more competition to Canadian fintech markets, as the deal injects global capital into the sector, establishing the bar for product, pricing, and platform innovation to crypto, digital banks, wealthtech and lifestyle finance platforms in Canada.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
