Hong Kong-listed Huobi Technology Holdings is launching three funds that will invest entirely in digital currencies after receiving a green light from the Hong Kong financial market regulator.
First revealed by Colin Wu on Twitter, one of the cryptocurrency funds will invest in Bitcoin, while another in Ethereum. The third will be a multi-strategy fund, but 100 percent of its investment will be in Cryptocurrencies .
Also, there will be a fourth fund, which will invest 10 percent of its assets in crypto and the rest in equity and fixed income instruments.
Operating under Strict Hong Kong Regulations
The Huobi subsidiary, which is owned by the crypto exchange’s CEO and Chairman Li Lin, is launching these crypto funds after gaining approval from the Hong Kong regulator. The company already received a type 9 asset management license last August, but to launch 100 percent crypto funds, it needed additional permissions.
The funds offering in Hong Kong will be similar to what Grayscale is offering to United States investors. The Huobi subsidiary will facilitate digital currency exposure to the lucrative Asian investors.
Similar to DCG, Huobi has a large ecosystem to help Asian investors, which will boost the prices of Bitcoin and Ethereum. The trouble with Huobi may be that its founder cannot leave China and is under investigation.
— Wu Blockchain (@WuBlockchain) March 4, 2021
“Huobi has a powerful ecosystem dedicated to helping Asian investors. It will drive up the prices of Bitcoin and Ethereum. The problem with Huobi may be that its founder cannot leave China because he is under investigation,” Wu wrote further.
Despite the confirmation of the launch of these crypto funds, Huobi is yet to decide on the size of the funds.
“The size of the funds is under discussion and depends on the development of distribution channels,” Mandy Liu, Vice President at Huobi Tech, told The Block. “We aim to become the leading virtual asset management company in Asia in the near future.”
