Huobi Asset Management has launched four digital currency funds. The company, which is a subsidiary of Huobi Technology Holdings has a $100 million target for September, setting the stage for wider institutional adoption.
Huobis Tech’s finance chef, Zhang Li, said that cryptocurrencies had become a more feasible alternative investment vehicle. In an interview with Bloomberg, he further explained that the feasibility is because more investors are looking to capitalize on emerging fintech sectors:
“Virtual assets have become established as a strong category in alternative investment, and more players will compete in this arena. […] 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.”
Huobi claims it has already secured a total of $50 million from the funds. The money, which is in commitments, has put the funds on its way to reach its final asset-under-management target by September. These funds will monitor the prices of Ethereum (ETH) and Bitcoin (BTC).
Crypto-based investment funds are growing in popularity. Some fund issuers, like Fidelity, want to package cryptocurrencies into an exchange-traded fund. However, no Bitcoin Exchange Traded-Fund (ETF) has received approval from the United States Securities and Exchange Commission. Canada, on the other hand, has already endorsed two Bitcoin ETFs.
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