(Bloomberg) -- Huobi Technology Holdings Ltd. has launched four cryptocurrency-related funds targeting $100 million in total assets by September, the latest attempt to ride a stunning rally in digital assets.
Huobi Tech is rolling out four funds including ones that will virtually track Bitcoin and Ether prices, allowing investors to bet on the coins without actually holding any currency. It's the latest so-called crypto tracker after similar funds have launched around the world. The firm already has secured $50 million in commitments across the four funds.
The offerings also include an active fund investing in a basket of virtual assets, and a private equity fund dedicated to investment in the crypto mining sector. In March, Huobi Tech obtained a license from the Securities and Futures Commission of Hong Kong to manage and distribute funds invested solely in crypto -- the first such approval after Arrano Capital.
“Virtual assets have become established as a strong category in alternative investment, and more players will compete in this arena,” Huobi Tech finance chief Zhang Li said during a Zoom interview from Beijing. “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.”
The new Hong Kong license and funds highlight 38-year-old Huobi founder Leon Li's endeavor to ensure his crypto empire, whose main exchange unit has drawn scrutiny over the years from Beijing, complies with regulations as it expands into adjacent arenas.
The move also come as mainstream financial companies embrace crypto after Bitcoin's value took off in October. However, some still warn of a bubble, and volatility and regulatory risk around the globe remain concerns for the asset class.
Longer term, Zhang said she expects the firm to provide a full suite of crypto-related services including custody, without specifying details.
Read more: The Crypto Mogul Who's Got the Ear of China's Central Bank
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