Huobi Technology Holdings Ltd, a subsidiary of the cryptocurrency exchange, has opened four virtual asset funds for retail investors in Hong Kong, opening up new avenues for qualified and institutional investors to learn about Bitcoin, Ether, and the crypto mining industry. In an effort to exploit a massive rally in digital assets, the company aims to have $100 million in assets by September.
Present funds include a BTC tracking fund, an ETH tracker fund, and a multi-strategy virtual asset fund, all of which are solely invested in virtual assets. Certified shareholders, such as high net worth individuals, mutual funds, family offices, corporate treasuries, and other traditional asset managers, may access the funds under the Securities and Futures Ordinance (SFO) and the Securities and Futures (Professional Investors) Rules.
It’s the newest crypto tracker, following the launch of similar funds all around the world. The four funds have now earned $50 million in donations, with a target of $100 million by Q3 2021, according to Huobi Asset Management.
Rally in Digital Assets is Spectacular
According to a statement issued by the firm on Thursday via Technode, two of the four investment funds created are passive funds for Ethereum and Bitcoin. Another investment is aggressively investing in a pool with several cryptocurrencies. Huobi’s fourth investment is a private equity fund that would invest solely in cryptocurrency mining activities.
Huobi Tech’s CFO, Lily Zhang, recently said that the bitcoin and ethereum tracker funds are completely compliant with Hong Kong financial regulations and provide conventional investors with a more liquid and compliant channel to directly invest in cryptocurrencies.
Zhang did, however, mention the maintenance fees associated with the funds.
Asian institutional investors are also involved in crypto properties, according to Lily Zhang, CFO of Huobi Tech. Although some people are comfortable buying cryptocurrency on their own, others tend to invest in managed funds such as Huobi assets.
Huobi Is Getting Into Cryptocurrency
Huobi Asset Management first disclosed the funds and received regulatory approvals from Hong Kong’s Securities and Futures Commission more than a month ago.
The step comes after bitcoin’s valuation skyrocketed in October, prompting mainstream financial institutions to welcome cryptocurrencies. Some, however, continue to warn of a bubble, and uncertainty and regulatory risk remain issues for the asset class around the globe. Zhang said she wants the company to provide a complete suite of cryptocurrency-related services in the future, including custody, but she didn’t elaborate.