Bitcoin, Ethereum, Multi-Strategy Digital Asset Fund Introduced by Huobi Asset Mgmt, Intended for Professional Investors

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Huobi Asset Management (Hong Kong) Ltd, a wholly-owned subsidiary of Huobi Technology Holdings Limited, has introduced virtual asset-related funds for professional investors. The new product offering includes three digital asset funds and a private equity fund for blockchain mining-related businesses, according to a release shared with CI.

On March 3, 2021, Huobi Asset Management was able to acquire the Securities and Futures Commission’s (SFC) approval to manage and distribute funds “100% invested in virtual assets, making the company only the second virtual asset fund manager to become licensed in Hong Kong.”

Huobi Asset Management’s new funds reportedly include a Bitcoin (BTC) tracker fund, an Ethereum (ETH) tracker fund, and a “multi-strategy” digital asset fund, all of which are “solely invested in virtual assets.”

The release further noted:

“The BTC and ETH tracker funds are passive funds designed to mirror the performance of the corresponding virtual asset. The multi-strategy fund is an actively managed fund that is invested in a basket of diversified virtual assets, offering investors the potential for greater returns compared to passive allocation. Both the ETH tracking fund and the multi-strategy fund are the first in this category of virtual asset investment products to be issued by a licensed fund manager in Hong Kong.”

Gillian Wu, CEO at Huobi Asset Management, noted that they provide professional investors the opportunity to build digital asset ownership in a “secure, reliable and convenient manner” through traditional fund products, “eliminating concerns in the area of accounting treatment, tax implication, and audit interpretation, which investors otherwise would have to face when directly purchasing virtual assets.”

Wu explained that the funds introduced are meant to “cater to different types of investors with different risk profiles, and we are confident about the future growth potential.”

Huobi Asset Management will also be providing a private equity fund that will make strategic investments in digital asset mining-related initiatives, a market segment that has witnessed dramatic growth during the past few years.

As mentioned in the announcement:

“As institutional investors, retail investors, and enterprises alike continue to adopt virtual assets, Huobi Asset Management will leverage its expertise to identify and invest in companies in the virtual asset mining ecosystem such as hardware manufacturers and mining pools. The private equity fund caters to investors seeking relatively stable returns through the operational management of portfolio companies within the mining space.”

Huobi Asset Management’s funds are open to professional investors “only as defined by the Securities and Futures Ordinance and the Securities and Futures (Professional Investors) Rules,” the release clarified while adding that as a licensed asset manager, Huobi Asset Management is “the first to accept both fiat currencies and virtual assets as choices for subscription.”

The announcement also noted that investors in the new funds include high net worth individuals (HNWIs), mutual funds, corporate treasuries, family offices, and various other traditional fund managers “looking to increase their exposure to blockchain and virtual assets as part of a diversified investment strategy.”

Zhang Li, CFO of Huobi Tech, stated:

“I am glad to see Huobi Asset Management’s funds launch in a quick and efficient manner while the virtual asset custody business of Huobi Tech progresses at a rapid pace. We aim to be the leader in providing comprehensive virtual asset related services in Asia and will continue making our best effort to drive regulatory compliance within the virtual asset industry.”

As noted in the release, Huobi Technology Holdings Limited (previously called “Pantronics Holdings Limited”) was listed in November 2016. Primarily engaged in OEM & EMS manufacturing of power-related and electronic products, Huobi Tech is “actively developing the blockchain ecosystem and virtual asset ecosystem business.”

Huobi Tech is in the process of applying for virtual asset and finance-related licenses in major markets across the globe. The firm and its subsidiaries have reportedly obtained approval from the SFC to carry out Type 4 (advising on securities) and Type 9 (asset management) regulated activities, the Trust or Company Service Provider license (Hong Kong) and the Trust Company License (Nevada USA).