Huobi Asset Management (Hong Kong) Limited (Huobi Asset Management), a wholly-owned subsidiary of Huobi Technology Holdings Limited (Huobi Tech, stock code: 1611), today announced the launch of four crypto-related funds for institutional investors. The new offerings, include three virtual asset funds and a private equity fund for blockchain mining-related businesses.
On March 3rd, 2021, Huobi Asset Management obtained the SFC’s approval to manage and distribute funds 100% invested in digital assets, making Huobi only the second virtual asset fund manager to become licensed in Hong Kong. Since obtaining approval, Huobi Asset Management has already received $50 million USD in commitments across the four funds and is targeting $100 million by Q3 2021.
Huobi Asset Management’s new crypto-focused funds include a BTC tracker fund, ETH tracker fund, and a multi-strategy virtual asset fund, all of which are 100% invested in virtual assets. The multi-strategy fund is an actively managed fund that invests in a basket of diversified cryptocurrencies, offering investors the potential for higher returns than passive allocation. Both the ETH tracking fund and the multi-strategy fund are the first virtual asset investment products of its kind to be issued by a licensed fund manager in Hong Kong.
“Huobi Asset Management offers professional investors the opportunity to build virtual asset ownership in a secure, reliable and convenient manner via traditional fund products, elevating concerns in the area of accounting treatments, tax implications and audit interpretations investors otherwise would have to face when directly purchasing virtual assets” Said Gillian Wu, CEO of Huobi Asset Management. “The funds launched are intended to cater to type of investors with different risk appetite, we are confident about future growth”
In addition to the three virtual asset funds, Huobi Asset Management is also offering a private equity fund that will make investments in crypto mining-related businesses, a market segment that has seen exponential growth over the past few years. As institutional investors, retail investors, and enterprises alike continue to adopt virtual assets, Huobi will leverage its expertise to identify and invest in companies in the virtual asset mining ecosystem, including hardware manufacturers or mining pools. The private equity fund caters to investors seeking relatively stable returns through the operational management of portfolio companies within the mining space.
Huobi Asset Management’s funds are open to qualified institutional investors as defined by the Securities and Futures Ordinance and the Securities and Futures (Professional Investors) Rules of the SFC. As a licensed asset manager, Huobi is the first to accept both fiat currencies or virtual assets as choices for subscription. Current investors in the new funds include high net worth individuals, mutual funds, corporate treasuries, family offices, and other traditional asset managers looking to increase their exposure to blockchain and digital assets as part of a diversified investment strategy.
The launch of the new funds comes as digital assets like BTC and ETH reach record highs amid growing institutional adoption. With digital assets becoming an increasingly important asset class, Huobi Asset Management aims to cater to institutional investors in need of investment products with a regulatory oversight from a trusted brand. The funds will be managed by a senior investment team with decades of combined asset management experience at global financial institutions, with investments expertise built across both traditional and virtual asset classes.
“I am glad to see the funds from Huobi Asset Management are launched fast and efficient; also the virtual asset custody business of Huobi Technology is progressing at a high tempo,” said Zhang Li, CFO of Huobi Technology. “We aim to be the leader in providing all-round virtual asset related services in Asia, and shall continue the best effort in driving regulatory compliance within the virtual asset industry”