TMX Group fully acquires VettaFi for $1 billion ahead of potential Bitcoin ETF approval in the US

In 2023, TMX Group announced plans to launch crypto spot trading, making it the first exchange group in North America to offer direct access to spot market in digital assets.

TMX Group Limited has successfully concluded the acquisition of the remaining 78% of common units of VettaFi Holdings LLC (VettaFi), a prominent US-based company specializing in indexing, digital distribution, analytics, and thought leadership.

The strategic investment, initiated in the first half of 2023 with approximately 22% of common units, reached completion in December 2023. The new deal brings the total amount of the acquisition to $1.03 billion.

TMX Group plans to launch crypto spot trading

This move is anticipated to propel TMX Group’s global expansion, augmenting revenue from the Global Solutions, Insights, and Analytics segment and recurring sources.

The addition of VettaFi enhances TMX Group’s data-driven insights, bolstering its support for ETF issuers while expanding digital capabilities and expertise. VettaFi is an ETF tool that lists blockchain and cryptocurrency-themed E3TFs, including the VanEck Digital Transformation ETF.

In 2023, TMX Group announced plans to launch crypto spot trading, making it the first exchange group in North America to offer direct access to spot market in digital assets. TMX Group also made its perspective known through a series of webinars on Bitcoin and cryptocurrencies.

In the meantime, Bitcoin has surpassed the $45,000 mark for the first time since April 2022 amid optimism about the approval of the first spot Bitcoin exchange-traded fund (ETF) in the United States.

A major driver of Bitcoin’s six-month rally has been the rumors of an ETF approval in the U.S. This development would enable investors to track Bitcoin’s price through a regulated financial product without owning the cryptocurrency directly, which is particularly appealing to institutional investors.

On Friday, BlackRock and other applicants updated their ETF registration forms, fueling speculation that the SEC’s decision might be imminent. Many industry experts are expecting approval as early as January.

TMX Group launched Alpha-X and Alpha DRK

TMX Group operates global markets, fostering the success of businesses, traders, and investors through digital communities and analytic solutions.

Its key operations include the Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange, The Canadian Depository for Securities, Montréal Exchange, Canadian Derivatives Clearing Corporation, and Trayport. Headquartered in Toronto, TMX Group has a global presence with offices in North America, London, Singapore, and Vienna.

In November 2023, TMX Group unveiled its latest advancement in trading technology—Alpha-X and Alpha DRK. These platforms are meticulously designed to improve the trading experience by offering superior execution for natural order flows and mitigating the impact of speed advantages inherent in today’s trading ecosystems.

Alpha-X is a visible order book that retains the established order types and functionalities of the TSX Alpha Exchange. It introduces the Smart Limit order type, a strategic addition tailored to navigate the volatility of modern markets.

Alpha DRK, in contrast, is a fully dark order book featuring a range of pegged order types and debuting the Smart Peg order type. Both Smart Limit and Smart Peg are groundbreaking in their ability to adapt orders dynamically in real-time to the prevailing market conditions, offering clients a significant edge in trade execution.