By
Godfrey Benjamin
April 20th, 2024
One of the funds launched by Huobi Asset Management is a private equity fund that will invest solely in cryptocurrency mining operations.
In a move that is geared to encourage institutional investors to adopt crypto, Huobi Asset Management, a subsidiary of Huobi Technology, has recently announced four cryptocurrency funds for institutional investors.
Huobi Asset Management is part of the publicly traded Huobi Technology which is listed on the Hong Kong stock exchange. With this initiative, it is expected that institutional investors will take advantage of this opportunity and the lenient laws of Singapore and Hong Kong to invest more in digital assets.
While Huobi Asset Management is independent of its parent company, it has its backing which many believe positions it to achieve its goal of becoming one of the reputable names when it comes to managing digital assets for institutional investors.
Of the four investment funds created, two are passive funds for Ethereum and Bitcoin. This is contained in a statement released by the company on Thursday through Technode. Another fund is for actively investing in several cryptocurrencies which forms one portfolio.
The fourth fund launched by Huobi Asset Management is a private equity fund that will invest solely in cryptocurrency mining operations.
Lily Zhang, CFO of Huobi Tech, in a recent interview says that “the bitcoin and ethereum tracker funds are fully compliant under the financial regulations in Hong Kong and give traditional investors a more liquid and compliant channel to directly invest in cryptocurrencies.” However, the top executive refused to reveal the management fees attached to the funds.
To restate the goal of the company which is to lure institutional investors, it has placed limitations on those who can invest in the funds. According to the company statement, only accredited professional investors like asset managers, high net worth individuals, and family offices can invest.
The exclusivity has not in any way limit the investment as the four funds have already raised $50 million from investors pledges, just half of the company target of $100 million by the third quarter of 2021.
Huobi Tech which is the parent company for Huobi Asset Management is owned by Huobi Global which operates the popular cryptocurrency exchange. It is the second-largest cryptocurrency exchange in the world, boasting a transaction volume of around $12 billion within the past 24 hours before this writing.
Back in March, The Hong Kong Securities and Futures Commission gave Huobi Asset management the license to manage digital assser portfolio, making. It one of the first to hold the license. Other companies are also seeking license in Hong Kong.