Regulated Bitcoin and Ethereum funds have launched in Hong Kong

CryptoSlate

Hong Kong-based Huobi Asset Management announced the launch of Bitcoin (BTC), Ethereum (ETH), and mining-related funds for professional investors yesterday, it said in a release shared with CryptoSlate.

“[We] offer professional investors the opportunity to build crypto ownership in a secure, reliable, and convenient manner via traditional fund products, which investors otherwise would have to face when directly purchasing cryptos,” explained Gillian Wu, CEO of Huobi Asset Management. 

How To Get Free Crypto  

“The funds launched are intended to cater to different types of investors with different risk profiles, and we are confident about the future growth potential,” he added.

The firm is a wholly-owned subsidiary of Huobi Technology Holdings, which runs the popular namesake crypto exchange and other products. Its offering is among the first in Hong Kong, a region that has, since the past few years, warmed up to institutional involvement in the crypto space.

An Ethereum fund for the first time

The new offerings include three crypto funds—of which two invest solely in Bitcoin and Ethereum—and a private equity fund for blockchain mining-related businesses, Huobi said.

As per the release, Huobi obtained the Securities and Futures Commission’s (SFC) approval in March 2021 that allows it to manage and distribute funds 100% invested in cryptocurrencies. The license made Huobi the second crypto fund manager to become recognized in Hong Kong.

Coinbase Banner  

Among the various new funds are a Bitcoin (BTC) tracker fund, an Ethereum (ETH) tracker fund, and a multi-strategy crypto fund.

The ‘tracker’ funds are passive—meaning they won’t be actively managed or traded—funds designed to mirror the performance of either Bitcoin or Ethereum. The multi-strategy fund, on the other hand, is an actively managed fund that is invested in a basket of diversified cryptocurrencies that offers investors the potential for greater returns compared to passive allocation. 

Both the Ethereum tracking fund and the multi-strategy fund are the first in this category of crypto investment products to be issued by a licensed fund manager in Hong Kong. 

Mining businesses in focus as well

In addition to the three crypto funds, Huobi 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.

FreeBitcoin Banner  

The will leverage its expertise to identify and invest in companies in the crypto mining ecosystem such as hardware manufacturers and mining pools.

Meanwhile, the funds come amidst a greater demand for crypto investments from institutional investors. Most of the investment action comes in from the US or Europe, in form of crypto funds, exchange-traded funds (ETFs), and other dedicated vehicles.

And while most demand is for Bitcoin, investors are dipping their toes in the Ethereum market as well.

US fund manager Grayscale’s Ethereum trust boasts over $7 billion worth of ETH under management, while Hong Kong-publicly listed firm Meitu became the world’s first company to hold Ethereum as part of its balance sheet earlier this year.

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Like what you see? Subscribe for updates.

Go to Source
Author: Shaurya Malwa


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.