2 years ago
162 Huobi Technology Holdings, which is a part of the Huobi Group that includes leading Seychelles-based crypto exchange Huobi Global, announced that it has launched four digital currency funds. This move comes intending to acquire $100 million in assets by September setting the stage for wider institutional adoption.
Huobi Group is targeting institutional investors with its new cryptocurrency-focused private equity offerings. The firm said that it has already secured $50 million in commitments across the 4 funds, putting it right on target to reach its cumulative assets-under-management target by September.
The funds are designed to track the prices of Ether (ETH) and Bitcoin (BTC). Huobi Tech’s offerings comprise an active fund that invests in several digital assets together with a private equity fund that is focused exclusively on cryptocurrency miners, according to a report by Bloomberg.
Huobi Tech’s finance chief, Zhang Li, told Bloomberg that cryptos have become a viable alternative investment vehicle, particularly as more investors seek to capitalize on emerging fintech industries:
“Virtual assets have become established as a strong category in alternative investment, and more players will compete in this arena. […] For professional investors who still have concerns about things like security and tax filing, they will opt to buy our funds rather than holding coins themselves.”
The company’s sister firm Huobi Global is the second-biggest crypto exchange behind Binance, in terms of trade volumes. On April 20, the platform processed over $13 billion worth of cryptocurrency transactions, according to Messari.
Cryptocurrency-focused investment funds are gaining popularity amid the bull market as investors look for more traditional exposure to this new asset class. Multiple fund issuers like Fidelity are seeking to package cryptos into an exchange-traded fund. So far, the US Securities and Exchange Commission has rejected all the proposals floated to list a Bitcoin EFT. However, Canadian officials have already approved two Bitcoin ETFs.
