HK’s first approved crypto fund Arrano Capital, the blockchain segment of Venture Smart Asia Limited announced launching Hong Kong’s first regulated virtual asset fund. The fund uses a traditional structure to provide ‘professional investors’ as defined by the Securities and Futures Ordinance access to Bitcoin and other Cryptos. The SFC issuing this license to manage virtual funds could have huge implications for the market.
The Chief Investment Officer for this endeavor is Avaneesh Acquilla. His experience includes nine years at Och-Ziff Capital Management in Asia, and previously seven years at Goldman Sachs and UBS in London. He stated that their objectives are to create “institutional grade product(s)”. Furthermore they’ve set their first year target at $100 million.
SFC & Regulations
The recoil from this sanctioned window for institutional investors could echo throughout the market. The SFC has previously issued licenses to Crypto asset managers like Hong Kong’s Diginex. Although, some that haven’t met the full criteria to run exclusively crypto funds can be marketed to professional investors only.
Despite regulations (or lack thereof), institutions and family offices globally have found numerous ways to invest in Bitcoin and other cryptocurrencies. Nonetheless the implications of the green light from a regulatory body like the SFC will likely help push the market more into the mainstream. Additionally, Arrano Capital stated they intend to launch another product later this year.
Undoubtedly the inflow of capital will be welcome by HODL’ers for its effect on Bitcoin prices. With the milestone of decoupling seemingly within reach. Fresh flows of new capital, paired with new kinds of Bitcoin investors should strengthen the crypto market as a whole. We are off to a Bullish week, which is good timing considering Bitcoin’s next halving is in about 20 days!
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