Huobi Technology's subsidiary approved to issue Bitcoin and Ethereum tracking funds

This article is sourced from Jinse Finance.

On March 4, according to China Securities Journal, Huobi Asset Management will issue three cryptocurrency funds, namely a Bitcoin tracking fund, an Ethereum tracking fund, and a multi-strategy cryptocurrency fund.

On March 4, Huobi Technology Holdings Limited (hereinafter referred to as "Huobi Technology"; 1611, HK) announced that its wholly-owned asset management subsidiary Huobi Asset Management (Hong Kong) Limited (hereinafter referred to as "Huobi Asset Management") has received approval from the Hong Kong Securities and Futures Commission (i.e., the Hong Kong SFC) to issue a fund that is 100% invested in virtual assets, according to the .

This means that Huobi Asset Management will become the second virtual asset management company approved since the Hong Kong SFC implemented regulations for cryptocurrency fund managers in October 2019, and it is the first to be allowed to issue actively managed virtual funds.

The head of Huobi Technology stated that in the United States, institutions represented by Tesla are gradually incorporating Bitcoin into mainstream asset allocation, and a similar trend is expected in Asia in the near future.

According to reports, the specific scope of Huobi Asset Management's approval is defined by the Securities and Futures Ordinance (Cap. 571) Schedule 5, regulated activities of Type 4 (advising on securities) and Type 9 (asset management). Therefore, Huobi Asset Management can manage investment portfolios in virtual assets and continue to conduct the aforementioned Type 4 and Type 9 regulated activities, which have been effective since March 3, 2021.

Wu Xuejing, CEO of Huobi Asset Management, stated that they have explored and prepared corresponding solutions from multiple perspectives, and the details are far beyond the series of standard terms previously issued by the SFC. The platform is confident in providing professional investors with a convenient and secure investment channel for virtual assets. Wu Xuejing believes that Huobi Asset Management's advantage lies in its ability to transfer expertise in the virtual field to a compliant licensed entity, advocating for true transparency and ethical standards in the asset investment field. Licensed entities and licensed individuals must prioritize client interests when trading any asset class (including virtual assets).

Currently, it is known that the three virtual asset funds under Huobi Asset Management will be managed by a senior investment team. A diversified fund product is being issued, operating under a balanced fund strategy with 90% virtual asset allocation and 10% other assets. The main partners for Huobi Asset Management's fund products include well-known institutions such as Sidley Austin, Mourant, DBS, and Fidelity Digital.