Huobi Asset Management, an affiliate of the crypto exchange, has launched in Hong Kong four virtual asset funds for institutional investors.
Why it matters: Newly licensed Huobi Asset Management is one of several Chinese cryptocurrency companies looking to lure deep-pocketed institutional investors by taking advantage of favorable digital asset laws in Hong Kong and Singapore.
- With the backing of a Hong Kong-listed crypto giant, the company aims to be a leader in digital asset management for traditional investors.
Details: Two of the new investment vehicles are passive funds that mirror the value of Bitcoin and Ethereum, according to a company statement shared with TechNode on Thursday. Another is an actively managed fund that invests in a basket of cryptocurrencies.
- The company also launched a private equity fund that will invest in crypto mining operations, which had not been previously announced.
- Only accredited professional investors such as family offices, high-net worth individuals, and asset managers can invest in the funds.
- Investors have already pledged $50 million across the four funds, and the company is targeting $100 million of total managed assets by the third quarter.
- Huobi Asset Management is a wholly owned subsidiary of Huobi Tech, which is in turn owned by the same shareholders as Huobi Global, the group behind the cryptocurrency exchange.
Context: The Hong Kong Securities and Futures Commission subsidiary granted Huobi Asset management in March a digital asset portfolio management license. Other companies like financial services firm Babel Finance are also looking to acquire asset management licenses in Hong Kong.
- Huobi Global is the world’s second-largest crypto exchange with transaction volume of nearly $12 billion in the last 24 hours as of the time of writing, data from research firm Messari showed.
- Hong Kong is reportedly planning to ban crypto trading for retail investors.
- Chinese high-net-worth individuals are reportedly looking to crypto as a hedge against the US dollar, amid rising crypto prices and geopolitical tensions.
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Correction: A previous version of this article misstated that Huobi Tech is owned by Huobi Global.