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Huobi Launches 4 Funds for Crypto Investors in Hong Kong

Key highlights:

  • Huobi Asset Management has launched four funds for investing in cryptocurrency
  • Two of the funds passively track the price of Bitcoin and Ethereum, but there’s also an actively-managed fund and a fund for investing in the crypto mining sector
  • Huobi has secured a license from Hong Kong securities regulator SFC

Huobi launches 4 crypto investment funds in Hong Kong

Huobi Technology Holdings subsidiary Huobi Asset Management has launched four funds for investing in cryptocurrency, securing $50 million in funding for the product thus far. According to a report by the South China Morning Post (SCMP),the offering consists of two funds that track the price of Bitcoin and Ethereum, respectively, an actively-managed fund that invests in a basket of cryptocurrencies, and a fund that invests in the cryptocurrency mining industry.

Huobi is offering the products under Hong Kong regulations, having secured a license from Hong Kong securities regulator SFC. According to the SCMP, Huobi is only the second business after Arrano Capital to gain regulatory approval in Hong Kong for launching cryptocurrency investment funds.

Huobi Tech’s finance chief Zhang Li said that the products are designed for professional investors who would prefer to get exposure to cryptocurrency through funds instead of purchasing and holding crypto assets themselves. The funds will only be available to professional and accredited investors 

Huobi Asset Management says that they are targeting $100 million in commitments across the four investment products by the third quarter of this year. 

Huobi’s main cryptocurrency exchange Huobi Global saw over $12.1 billion in trading volume over the last 24 hours. The exchange’s HT token currently commands a market capitalization of around $3.3 billion.

As the cryptocurrency market matures and the Bitcoin exchange rate continues climbing, we are seeing more and more cryptocurrency investment products launching around the world that allow traditional investors to gain exposure to the emerging asset class. 

In Europe, there’s exchange-traded products launched by the likes of CoinShares, 21Shares and ETC Group. In the United States market, Grayscale offers cryptocurrency investment trusts, with the company’s Grayscale Bitcoin Trust having over $30 billion in assets under management. In Canada, a number of exchange-traded funds (ETFs) tracking Bitcoin and Ethereum are now trading on the Toronto Stock Exchange.

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