Huobi Technology Holdings, a Hong Kong-listed firm owned by Huobi exchange’s CEO and chairman Li Lin, is set to launch three funds that are 100% invested in digital assets. Huobi Tech said in an announcement that its fully-owned subsidiary Huobi Asset Management had obtained additional regulatory clearing from the Hong Kong Securities and Futures Commission (SFC) to operate 100% digital asset funds, as reported by The Block.
Huobi Tech plans to launch pure BTC, ETH funds in Hong Kong.
Huobi Asset Management plans to launch a BTC tracker fund, an ETH tracker fund, and multi-strategy digital asset funds that are all 100% invested in cryptocurrencies. Also, it is rolling out a multi-asset fund that splits 10% in digital assets and 90% in equity and fixed income. Huobi Tech said the funds’ subscription accepts both fiat and cryptocurrencies. The plan follows Huobi Tech’s announcement last August that it received a type 9 (asset management) license from the SFC. However, a type 9 license itself does not automatically give the green light to operate funds that are 100% in crypto assets.
Huobi’s CEO purchased over 70% of the stakes of Pantonics.
In a $77 million deal in 2018, Huobi CEO and chairman Li purchased over 70% of the stakes of Pantonics, an electronic component manufacturer listed in Hong Kong. The firm was subsequently rebranded to Huobi Technology Holdings in 2019, but Li has not yet restructured Huobi’s exchange business into the Hong Kong shell. Huobi Tech has not disclosed its envisioned size of the planned funds. “The size of the funds is under discussion and depends on the development of distribution channels,” said Mandy Liu, vice president of Huobi Tech’s Investor Relations. “We aim to become the leading virtual asset management company in Asia in the near future.”
