The world of digital assets is evolving rapidly, and institutional-grade investment opportunities are becoming more accessible than ever. A major milestone was recently reached when a Hong Kong-listed company announced the launch of new cryptocurrency-focused funds — marking a significant step toward mainstream financial integration.
Hong Kong-Listed Firm Launches 4 New Crypto Funds
On April 22, Huobi Technology, a publicly traded company on the Hong Kong Stock Exchange, made an official announcement: its wholly owned subsidiary, Huobi Asset Management (Huobi AM), has officially launched four new fund products. This move comes shortly after the firm received regulatory approval from the Securities and Futures Commission (SFC) of Hong Kong to manage and distribute virtual asset funds.
Among the newly launched offerings are three funds that invest 100% in digital assets:
- A Bitcoin-tracking fund
- An Ethereum-tracking fund
- A proactively managed multi-strategy virtual asset fund
The fourth fund focuses on private equity investments related to blockchain mining operations. Importantly, these products are exclusively available to professional investors, aligning with Hong Kong’s strict regulatory framework for high-risk financial instruments.
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A Regulated Pathway for Digital Asset Investing
Since the SFC introduced guidelines in October 2019 requiring virtual asset managers to comply with licensing and compliance standards, very few firms have achieved full approval. Huobi AM stands out as the second firm in Hong Kong authorized to issue 100% virtual asset funds — but with a critical distinction: it's the first to receive a license for actively managed crypto investment strategies.
This means Huobi AM can dynamically allocate capital across various digital assets based on market conditions, rather than simply mirroring price movements like passive index funds. Additionally, it becomes the first regulated manager in Hong Kong to allow investors to deposit and withdraw using either fiat currency or cryptocurrencies — a flexible feature that bridges traditional finance and decentralized ecosystems.
Huobi Group, one of China’s largest cryptocurrency exchange platforms, operates behind this initiative. The journey began in 2018 when Huobi Global, together with investment partner Trinity Gate, acquired a controlling stake (71.67%) in Tongcheng Holdings — a then-struggling Hong Kong-listed shell company. After a full corporate restructuring, including leadership changes and a rebranding, Tongcheng Holdings officially became Huobi Technology Holdings Limited in September 2019.
Under the leadership of Huobi founder Li Lin — who was appointed Executive Director, Chairman, and CEO — the company pivoted entirely toward digital asset management services for institutional clients.
Market Sentiment Faces a Crossroads
While regulatory progress is clear, broader market sentiment around cryptocurrencies remains divided — especially regarding Bitcoin.
At the time of Huobi’s regulatory approval, Bitcoin was experiencing a notable price correction. Investor confidence wavered as major financial institutions expressed skepticism. According to a Deutsche Bank survey, most fund managers believe Bitcoin is more likely to fall by 50% over the next 12 months than double in value.
Similarly, Bank of America's latest fund manager survey revealed that 74% of professional investors view Bitcoin as a speculative bubble. Only 16% disagreed. The survey, which included 200 asset managers overseeing $533 billion in assets, also ranked Bitcoin as the second most crowded trade globally — just behind big-tech stocks.
JPMorgan strategists warned that if Bitcoin fails to break above the $60,000 threshold soon, technical momentum could collapse. They noted that recent increases in futures long positions were likely driven by algorithmic traders and crypto-focused funds — groups also responsible for rapid unwinding during volatility spikes.
Yet not all outlooks are bearish.
Scott Minerd, Global Chief Investment Officer at Guggenheim Partners, acknowledges the current frothiness but remains long-term bullish. He predicts a potential short-term correction down to $20,000–$30,000, representing roughly a 50% drop. However, he believes this would set the stage for a new bull cycle, ultimately pushing Bitcoin toward $400,000–$600,000 per coin.
Ethereum Shines Amid Bitcoin’s Pullback
Interestingly, while Bitcoin faced headwinds, Ethereum hit an all-time high just days after Huobi’s announcement. On April 22, ETH surged to $2,580**, pushing its market capitalization close to **$300 billion — a new record.
This divergence is significant. Historically, Ethereum tends to follow Bitcoin’s trend. But this time, ETH demonstrated relative strength during BTC’s downturn — suggesting growing investor interest in Ethereum’s utility beyond speculation, particularly in decentralized finance (DeFi), non-fungible tokens (NFTs), and smart contract platforms.
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Some analysts now suggest that Ethereum may act as a market leader during the next phase of crypto adoption — especially as network upgrades improve scalability and reduce fees.
Why Institutional Crypto Funds Matter
The launch of regulated crypto funds by public companies like Huobi Technology signals deeper integration between traditional finance and digital assets. These developments echo broader trends:
- CME’s Bitcoin and Ethereum futures
- Growing institutional custody solutions
- Increasing regulatory clarity in key markets
As noted by Guosheng Securities, Huobi AM’s approval marks a pivotal moment — not just for the firm, but for the entire industry. It reinforces the idea that compliance and innovation can coexist.
For investors, these funds offer several advantages:
- Exposure to digital assets through regulated vehicles
- Professional portfolio management
- Enhanced transparency and reporting
- Legal protection under Hong Kong financial law
However, risks remain. Cryptocurrencies are highly volatile, regulatory landscapes continue to evolve, and market sentiment can shift rapidly based on macroeconomic factors or influential voices like Elon Musk.
Still, the trajectory is clear: digital assets are no longer fringe experiments — they’re becoming part of the global financial infrastructure.
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Frequently Asked Questions (FAQ)
Q: Are these crypto funds available to retail investors?
A: No. All four funds launched by Huobi AM are restricted to professional investors only, as defined by Hong Kong’s SFC regulations.
Q: What makes an actively managed crypto fund different from a passive one?
A: Active funds use strategic decision-making to buy, sell, or hold assets based on market analysis, aiming to outperform benchmarks. Passive funds simply track an index or asset price without intervention.
Q: How does Huobi Technology differ from Binance or other major exchanges?
A: While both operate in crypto, Huobi Technology is a publicly listed entity focused on regulated financial services like asset management. Binance remains privately held and operates primarily as a global trading platform without direct access to public capital markets.
Q: Is investing in a Bitcoin fund safer than buying Bitcoin directly?
A: It depends. Fund investments offer structure and oversight but come with management fees and limited control. Direct ownership gives full control but requires secure self-custody practices.
Q: What role does regulation play in crypto fund launches?
A: Regulation ensures investor protection, transparency, and operational standards. In Hong Kong, SFC approval means strict audits, risk disclosures, and capital requirements must be met before launch.
Q: Could other Asian markets follow Hong Kong’s lead?
A: Yes. South Korea, Japan, and Singapore already have progressive crypto frameworks. As demand grows, more jurisdictions may adopt similar licensing models for digital asset managers.
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