Tidal Financial Group is primed to grow its European business following its recent merger, new investment and not ruling out the possibility of white labelling products this side of the pond.
Toroso Investments – the supervisory and trading arm owned by Tidal – is currently the only part of the business operating in Europe after entering the market last year.
The firm is licenced in Ireland and performs portfolio management on HANetf’s EMQQ Emerging Markets Internet and Ecommerce UCITS ETF (EMQQ), FMQQ Next Frontier Internet & Ecommerce ESG-S UCITS ETF (FMQQ) and Finamex Mexico S&P/BMV International UMS Sovereign Bond 5-10yr UCITS ETF (MEXS).
Now, Toroso has merged with Tidal ETF Services and Tidal Asset Management in a move that “clarifies the company’s value proposition,” Telmo Rueda (pictured), director of EMEA at Tidal, told ETF Stream.
The move follows a $32m investment from private equity backers FTV Capital in early October.
Rueda said: “The investment we received has allowed us to add headcount in the marketing and sales teams and develop our tech capabilities. So far it is more on the US side but we continue to look at what is going on in Europe.”
While offering its supervisory services in Europe, the recent investment and merger raise the question of whether the firm will also bring its white-label ETF offering to the continent.
In the US, Tidal has $6.5bn assets under its supervision across 55 ETFs it partners on with third parties. It also operates a range of unique products – in single stocks, income, hedge fund strategies, ESG, its ‘God Bless America’ thematic and potentially even leverage – which could fill gaps in the European market.
“Right now, we are only licenced in Ireland to provide portfolio management and trading services,” Rueda continued. “As a white-label platform in the US, remaining active with a new ETF launch probably every two weeks, we look at Europe with interest.”
“We are not ruling out white-labelling in Europe,” he said, however, the firm will be mindful of the challenges US ETF issuers face when considering a move into the European market such as distribution, rebates and the lack of a consolidated tape.