The inaugural secondary crypto market fund introduced by HashKey Capital intends to allocate a substantial portion of its assets to second-tier cryptocurrencies, with the objective of surpassing Bitcoin, the dominant player in the market, as stated by the fund’s portfolio manager.
As per media reports said, this new fund, operated by the investment division of Hong Kong’s prominent crypto entity, HashKey Group, is set to launch on Friday and has already garnered interest from potential clients, primarily high-net-worth individuals and investment firms catering to affluent Asian families, according to Jupiter Zheng, who spoke with Reuters.
Unlike many other crypto funds, which heavily rely on Bitcoin and Ethereum, with over 50% of their investments in these top two cryptocurrencies, HashKey Capital will leverage its expertise in crypto venture investments to diversify its holdings into smaller competitors collectively referred to as “altcoins.” Additionally, a portion of the fund’s assets will be held in cash.
With assets under management exceeding $1 billion, HashKey Capital previously announced its goal of raising $100 million for this fund within a 12-month timeframe.
Hong Kong’s government has been proactive in embracing cryptocurrencies and addressing market demand for alternative assets. The city is actively promoting the development of web3, a version of the internet that operates on blockchain technology, the foundation of crypto assets. In fact, Hong Kong has hosted around 100 crypto-related conferences this year.
Zheng noted that HashKey Capital is also in the process of establishing distribution channels with certain offshore Chinese financial institutions. He explained that the sluggish performance of the Hong Kong stock market has prompted investors to seek diversified investment strategies. “We see untapped demand from professional investors who are seeking above-market returns in the crypto space,” he stated.
Zheng expressed confidence that the cryptocurrency market has reached its bottom, with improved liquidity in the industry coinciding with the peaking U.S. interest rates and major U.S. asset management firms seeking approval for spot Bitcoin ETFs, including Grayscale’s recent success in a spot Bitcoin ETF case.
