Huobi Asset Management has launched Bitcoin and Ether funds for institutional investors. The launch comes just a month after the subsidiary of Hong Kong-listed Huobi Tech first revealed the funds after receiving regulatory approvals from Hong Kong’s Securities and Futures Commission.
Huobi Asset Management Launches Four Crypto Funds
The subsidiary of Huobi Technology Holdings Ltd., Huobi Asset Management has launched four cryptocurrency-related funds including ones that will virtually track the prices of Bitcoin and Ether. This will allow investors to bet on the coins without actually holding the cryptocurrency.
The firm has already secured $50 million in commitments across the four funds and is targeting $100 million by Q3 2021.
Besides the two passive funds, the offering further includes an active multi-strategy fund that would invest in a basket of cryptocurrencies and a private equity fund that would invest in the crypto mining sector.
During a Zoom interview with Bloomberg, Huobi Tech finance chief Zhang Li said:
“Virtual assets have become established as a strong category in alternative investment, and more players will compete in this arena. For professional investors who still have concerns about things like security and tax filing, they will opt to buy our funds rather than holding coins themselves.”
Crypto Funds Opened Only for Institutional Investors
Huobi Technology is an affiliate of cryptocurrency exchange Huobi Group via common ownership. However, the two entities operate independently.
Formerly known as the public electronic appliance company Patronics, Huobi Technology was acquired by the founder of Huobi cryptocurrency exchange, Leon Li through a reverse takeover in 2018.
The four funds are opened only for accredited investors including high net-worth individuals, family offices, asset managers, and corporates.
In March, Huobi Tech obtained a license from the Securities and Futures Commission of Hong Kong to manage and distribute funds invested solely in cryptocurrencies, the first such approval after Arrano Capital.