Hong Kong-based Huobi Asset Management announced the launch of Bitcoin (BTC), Ethereum (ETH)and mining-related funds for professional investors, it said in a press release shared with CryptoSlate.
“[We] Offer professional investors the ability to build crypto ownership in a safe, reliable and convenient way through traditional fund products that investors would otherwise encounter when buying crypto directly, ”said Gillian Wu, CEO of Huobi Asset Management.
“The funds launched target different types of investors with different risk profiles and we are confident about future growth potential,” he added.
The company is a wholly owned subsidiary of Huobi Technology Holdings, which operates the popular crypto exchange of the same name and other products. The offering is one of the first in Hong Kong, a region that has warmed to institutional engagement in the crypto space for several years.
First time an Ethereum fund
New offerings include three crypto funds – two of which invest exclusively in Bitcoin and Ethereum – and a private equity fund for blockchain mining companies, Huobi said.
According to the press release, in March 2021, Huobi received approval from the Securities and Futures Commission (SFC) that allows it to manage and distribute funds 100% invested in cryptocurrencies. The license made Huobi the second crypto fund manager to be recognized in Hong Kong.
Breaking: China’s largest exchange, Huobi, has received a license for cryptocurrency funds in Hong Kong and will launch Bitcoin, Ethereum and multi-strategy funds on March 3rd. Similar to grayscale, this move by Huobi could push traditional Asian investors into the cryptocurrency field. pic.twitter.com/IIrhZVKiGQ
– Wu Blockchain (@WuBlockchain) March 4, 2021
The various new funds include a Bitcoin Tracker Fund (BTC), an Ethereum Tracker Fund (ETH), and a multi-strategy crypto fund.
The “tracker” funds are passive– that is, they are not actively managed or traded – funds that are designed to reflect the performance of Bitcoin or Ethereum. The multi-strategy fund, on the other hand, is a active Managed fund that is invested in a basket of diversified cryptocurrencies that offers investors the potential for higher 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 companies also in focus
In addition to the three crypto funds, Huobi also offers a private equity fund that invests in crypto mining companies, a market segment that has seen exponential growth in recent years.
The company will use its expertise to identify and invest in companies in the crypto mining ecosystem such as hardware manufacturers and mining pools.
Meanwhile, the funds are in the midst of greater demand for crypto investments from institutional investors. Most of the investment measures come from the USA or Europe in the form of crypto funds. Exchange Traded Funds (ETFs)and other special vehicles.
04/21/21 UPDATE: Net assets under management, stocks per share and market price per share for our investment products.
Total AUM: 45.8 billion USD BTC $ BCH $ ETH $ ETC $ ZEN $ LTC $ XLM $ ZEC $ BAT $ LINK $ MANA $ FIL $ LPT pic.twitter.com/gAujWHw5qQ
– Grayscale (@Grayscale) April 21, 2021
While Bitcoin is the most in demand, investors are also diving into the Ethereum market.
U.S. fund manager Grayscale’s Ethereum Trust has over $ 7 billion worth of managed ETH, while Hong Kong-listed Meitu became the company world’s first company to hold Ethereum as part of his balance sheet earlier this year.
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