Huobi Technology launches funds tracking bitcoin, ether as it rides the boom in cryptocurrency-related punts
- Huobi is rolling out four funds including ones that will virtually track bitcoin and Ether prices, allowing investors to bet on the coins without actually holding any currency
- The firm already has secured US$50 million in commitments across the four funds
Huobi Technology Holdings has launched four cryptocurrency-related funds targeting US$100 million in total assets by September, the latest attempt to ride a stunning rally in digital assets.
Huobi is rolling out four funds including ones that will virtually track bitcoin and Ether prices, allowing investors to bet on the coins without actually holding any currency. It’s the latest so-called cryptocurrency tracker after similar funds have launched around the world. The firm already has secured US$50 million in commitments across the four funds.
The offerings also include an active fund investing in a basket of virtual assets, and a private equity fund dedicated to investment in the cryptocurrency mining sector. In March, Huobi obtained a license from the Securities and Futures Commission of Hong Kong to manage and distribute funds invested solely in cryptocurrency – the first such approval after Arrano Capital.
“Virtual assets have become established as a strong category in alternative investment, and more players will compete in this arena,” Huobi’s finance chief Zhang Li said during a Zoom interview from Beijing. “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 new Hong Kong license and funds highlight 38-year-old Huobi founder Leon Li’s endeavour to ensure his cryptocurrency empire, whose main exchange unit has drawn scrutiny over the years from Beijing, complies with regulations as it expands into adjacent arenas.
The move also come as mainstream financial companies embrace cryptocurrency after bitcoin’s value took off in October. However, some still warn of a bubble, and volatility and regulatory risk around the globe remain concerns for the asset class. Longer term, Zhang said she expects the firm to provide a full suite of cryptocurrency-related services including custody, without specifying details.