A financial services firm from Hong Kong snubs Bitcoin and is more interested in altcoins.
HashKey Capital, a digital assets financial services company, is looking to invest a significant amount of its $100m fund in altcoins.
About half of the newly acquired assets would be Bitcoin and Ethereum. The rest of the fund will be used to acquire smaller coins and tokens in order to diversify allocations.
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Allegedly, the goal of such an acquisition is to outperform Bitcoin.
As reported by Reuters, the fund is run by the Hong Kong branch, and the company aimed to raise $100m over 12 months. Among the potential clients are well-off individuals and investment firms.
HashKey Capital is reportedly working on distribution channels with offshore Chinese financial institutions due to Hong Kong’s weakened stock market.
Jupiter Zheng, the fund’s portfolio manager, said:
We see untapped demand from professional investors who wish to chase (above-market) alpha (returns) in crypto.
The news of the fund's plans came as Hong Kong’s government moved to accept crypto and Web3.
Recently, the city’s Securities and Futures Commission (SFC) began accepting licensing applications for crypto trading platforms. Virtual asset providers will be able to serve retail investors as long as they pass the risk assessment.
According to the regulator:
Hong Kong’s comprehensive virtual assets regulatory framework follows the principle of ‘same business, same risks, same rules’ and aims to provide robust investor protection and manage key risks. This will enable the industry to develop sustainably and support innovation.
One of the companies to jump into the new market is SEBA Bank and its subsidiary in Hong Kong, which obtained approval-in-principle to offer crypto services in the city.
