Huobi Subsidiary to Launch 3 Crypto Funds in Hong Kong

Hong Kong-listed Huobi Technology Holdings is launching three funds that will invest entirely in digital currencies after receiving a green light from the Hong Kong financial market regulator.

First revealed by Colin Wu on Twitter, one of the cryptocurrency funds will invest in Bitcoin, while another in Ethereum. The third will be a multi-strategy fund, but 100 percent of its investment will be in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.

Also, there will be a fourth fund, which will invest 10 percent of its assets in crypto and the rest in equity and fixed income instruments.

Operating under Strict Hong Kong Regulations

The Huobi subsidiary, which is owned by the crypto exchange’s CEO and Chairman Li Lin, is launching these crypto funds after gaining approval from the Hong Kong regulator. The company already received a type 9 asset management license last August, but to launch 100 percent crypto funds, it needed additional permissions.

The funds offering in Hong Kong will be similar to what Grayscale is offering to United States investors. The Huobi subsidiary will facilitate digital currency exposure to the lucrative Asian investors.

Similar to DCG, Huobi has a large ecosystem to help Asian investors, which will boost the prices of Bitcoin and Ethereum. The trouble with Huobi may be that its founder cannot leave China and is under investigation.

— Wu Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term (@WuBlockchain) March 4, 2021

“Huobi has a powerful ecosystem dedicated to helping Asian investors. It will drive up the prices of Bitcoin and Ethereum. The problem with Huobi may be that its founder cannot leave China because he is under investigation,” Wu wrote further.

Despite the confirmation of the launch of these crypto funds, Huobi is yet to decide on the size of the funds.

“The size of the funds is under discussion and depends on the development of distribution channels,” Mandy Liu, Vice President at Huobi Tech, told The Block. “We aim to become the leading virtual asset management company in Asia in the near future.”