Hong Kong-based Huobi Asset Management Limited has recently issued three virtual funds and a private equity fund for professional investors in Asia. As per the notification, the businesses that are related to blockchain mining can use these funds.
The funds offered by the company include a BTC tracker fund, an ETH tracker fund and a multi-strategy virtual asset fund. These funds are solely used for making an investment in virtual assets. It is to be noted that to date, these funds have raised a total of more than $70 million.
According to the reports, BTC and ETH tracker funds are the passive funds that have been created to mirror the performance of the corresponding virtual assets. However, a multi-strategy fund is an actively managed fund that is invested in a basket of diversified virtual assets. Compared to passive funds, these actively managed funds offer greater returns to the investors.
ETH tracking fund and multi-strategy virtual strategy fund are the first virtual asset investment products that are to release by a licensed fund manager in Hong Kong.
This new kind of investment wave in cryptocurrency has made one thing clear, that many of the professional investors around the world are still looking for familiarity. Before making an investment in cryptocurrency, the investors would look out for funds and products that are a bit familiar and regulated protected.
Grayscale Bitcoin Trust in the US is one of the best institutional Bitcoin funds that acquire the regulatory greenlights. Since the launch of this fund, it has been growing in the market.
It appears that Huobi Asset Management is following the footsteps of Grayscale for issuing the virtual funds. The subsidiary of Houbi Technology Holding Limited has become the second fund manager company in Hong Kong that has received approval from the Securities and Futures Commission for issuing 100 percent virtual asset funds.
Some of the experts believe that this new kind of fund could introduce a new kind of investment in Asia. Gillian Wu, the head of Huobi Asset Management is one of those experts, who think this investment fund could be a turning point.
He mentioned, “According to the professional investors’ knowledge level and risk appetite of virtual assets, we will advise our clients to choose the fund products that best suit their needs. For institutional, especially corporate clients, they want to allocate to virtual assets through a convenient and compliant channel to achieve diversification needs.”