Huobi Technology Holdings – part of the Huobi Group, which includes leading Seychelles cryptocurrency exchange Huobi Global – launched four digital currency funds in September targeting $ 100 million in assets, paving the way for wider institutional adoption.
The company said it has already raised $ 50 million in pledges for the four funds, putting it on track to hit the target for total assets under management by September. The funds will track the prices of Bitcoin (BTC) and Ether (ETH).
As reported by Bloomberg, Huobi Tech’s offering includes an active fund that invests in a basket of digital assets in addition to a private equity fund that focuses solely on crypto miners.
Zhang Li, Huobi Tech’s chief of finance, told Bloomberg that cryptocurrencies have become a viable alternative investment vehicle, especially as more investors look to capitalize on emerging fintech sectors:
“Virtual assets have become established as a strong alternative investment category, and more players will compete in this arena. […] Professional investors who are still concerned about things like security and tax filing will choose to buy our funds rather than keep coins themselves. “
In terms of trading volumes, the company’s sister company Huobi Global is the second largest cryptocurrency exchange behind Binance. On Tuesday, the platform processed just over $ 13 billion in crypto transactions, according to Messari.
Crypto-focused investment funds are gaining in popularity amid the bull market as investors look for more traditional exposure to the new asset class. Several fund issuers, including Fidelity, want to package cryptocurrencies in an exchange-traded fund. So far, the U.S. Securities and Exchange Commission has rejected all proposals to list a Bitcoin ETF. North of the border, however, Canadian officials have already approved two Bitcoin ETFs.