So far, Metalpha has reportedly raised only 20% of the desired amount.
Metalpha Technology, a cryptocurrency wealth manager based in Hong Kong, has focused on providing fresh investment avenues in Bitcoin (BTC) and Web3 for investors in Asia.
According to a Bloomberg report shared on April 12th, the company is looking to raise a $100 million fund for investing in Grayscale Investments' crypto products.
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The move is led by Metalpha's desire to present Chinese investors with a regulated means of investing in cryptocurrencies and Web3.
The upcoming investment initiative, named Next Generation Fund I, is being developed in partnership with NextGen Digital Venture Limited.
This fund will invest both directly and indirectly in Grayscale's products, including cryptocurrency offerings and Graysacale's structured derivatives products. The company claims that this approach will allow institutional and high-net-worth individuals to obtain indirect exposure to the crypto market.
According to Adrian Wang, Metalpha's founder and CEO, since March, the company has secured $20 million in funding.
A lot of our clients are family offices with traditional backgrounds, rather than pure crypto or pure Web3 native investors <...> It’s overseas Chinese institutions — some of them are family offices, some of them are public companies.
Wang also pointed out that Metalpha has seen a surge in demand for its products recently. This follows a period of uncertainty during the 2022 bear market and the collapse of the crypto exchange FTX. Regarding the matter, Wang noted:
A lot of clients hesitated to place new orders, but now it’s getting much better.
It is worth noting that in mid-2022, Grayscale sued US Securities and Exchange Commission (SEC) as it refused to convert Grayscale Bitcoin Trust (GBTC) to a BTC exchange-traded fund (ETF). In the most recent turn of events, a federal judge questioned SEC's decision to not convert GBTC.
