Cryptocurrency exchange Huobi Technology’s subsidiary had received the regulatory nod to launch 100% virtual asset funds in Hong Kong.
Following the receipt of approval, Huobi Asset Management is planning to launch three virtual asset funds, namely BTC tracker fund, ETH tracker fund, and multi-strategy virtual asset fund.
The company plans to roll out its multi-asset fund with 10% allocation to virtual assets, whilst 90% into traditional assets, including equities and fixed income.
Huobi Asset Management CEO Gillian Wu said: “We aim to provide various choices to investors with different risk appetites. We have covered comprehensive perspectives through in-depth dialogues with SFC and made full preparations on corresponding solutions.
“We are confident that our funds could offer one of the most secure and reliable channels for Professional Investors to access this novel asset class conveniently.”
A senior investment team will oversee virtual asset funds of the Huobi Asset, whose key business partners include DBS, Sidley Austin, Mourant, and Fidelity Digital among other institutions.
The firm is the second licensed virtual asset manager in Hong Kong. In 2019, fund services provider Zedra entered into the digital assets space in partnership with digital custodian Vo1t.
Commenting on the development, Huobi Tech management said: “We are delighted that Huobi Asset Management team has secured such a breakthrough. The approval’s timing is perfect, coinciding with the mainstream institutional adoption of virtual assets starting from this year.
“We will continue to explore the possibility of diversifying our businesses in relevant areas to enhance our growth prospects and bring long-term sustainable returns to our shareholders.”