Huobi Asset Management, an affiliate of the crypto exchange, has launched in Hong Kong four virtual asset funds for institutional investors.

Why it matters: Newly licensed Huobi Asset Management is one of several Chinese cryptocurrency companies looking to lure deep-pocketed institutional investors by taking advantage of favorable digital asset laws in Hong Kong and Singapore.

  • With the backing of a Hong Kong-listed crypto giant, the company aims to be a leader in digital asset management for traditional investors.

Details: Two of the new investment vehicles are passive funds that mirror the value of Bitcoin and Ethereum, according to a company statement shared with TechNode on Thursday. Another is an actively managed fund that invests in a basket of cryptocurrencies.

  • The company also launched a private equity fund that will invest in crypto mining operations, which had not been previously announced.
  • Only accredited professional investors such as family offices, high-net worth individuals, and asset managers can invest in the funds.
  • Investors have already pledged $50 million across the four funds, and the company is targeting $100 million of total managed assets by the third quarter.
  • Huobi Asset Management is a wholly owned subsidiary of Huobi Tech, which is in turn owned by the same shareholders as Huobi Global, the group behind the cryptocurrency exchange.

Context: The Hong Kong Securities and Futures Commission subsidiary granted Huobi Asset management in March a digital asset portfolio management license. Other companies like financial services firm Babel Finance are also looking to acquire asset management licenses in Hong Kong.

  • Huobi Global is the world’s second-largest crypto exchange with transaction volume of nearly $12 billion in the last 24 hours as of the time of writing, data from research firm Messari showed.
  • Hong Kong is reportedly planning to ban crypto trading for retail investors.
  • Chinese high-net-worth individuals are reportedly looking to crypto as a hedge against the US dollar, amid rising crypto prices and geopolitical tensions.

READ MORE: Chinese investors flocked to cryptocurrencies amid techwar

Correction: A previous version of this article misstated that Huobi Tech is owned by Huobi Global.

Eliza was TechNode's blockchain and fintech reporter until July 2021, when she moved to CoinDesk to cover crypto in Asia. Get in touch with her via email or Twitter.