Huobi Technology's subsidiary Huobi Asset Management has launched four new funds, three of which are 100% virtual asset funds

On April 22, Huobi Technology Holdings Co., Ltd. (hereinafter referred to as "Huobi Technology"; 1611.HK) issued an announcement stating that its wholly-owned subsidiary Huobi Asset Management (Hong Kong) Co., Ltd. (hereinafter referred to as "Huobi Asset Management") will issue four fund products from now on. Among them, there are three funds that invest 100% in virtual assets, namely Bitcoin Tracking Fund, Ethereum Tracking Fund and Actively Managed Multi-Strategy Virtual Asset Fund, and a blockchain mining-related private equity fund. These four fund products will only be available to professional investors (as defined in the Securities and Futures Ordinance and the Securities and Futures (Professional Investors) Rules).

Huobi Asset Management is the second fund manager to obtain approval from the SFC to issue 100% virtual asset funds since the Hong Kong Securities and Futures Commission implemented regulations for virtual fund managers in October 2019. It is worth mentioning that the Ethereum tracking fund and active multi-strategy multi-currency fund launched by Huobi Asset Management are both the first virtual asset fund products issued by a licensed fund manager in Hong Kong.

Since the beginning of this year, virtual assets represented by Bitcoin have repeatedly hit new highs. Both institutional investors and retail investors have compared it with gold, which is also a safe-haven asset, and have continuously set off a market boom. According to research by data and market tracking agencies CoinGecko and Blockfolio, the market value of the entire virtual asset, including Bitcoin, has reached a historical peak of 2 trillion US dollars. However, compared with the market value of the traditional stock market of about 95 trillion US dollars and the market value of the debt market of 254 trillion US dollars, virtual assets are still in their infancy in terms of capital scale.

As an emerging market category, virtual assets are increasingly attracting the attention of institutional investors. Ms. Wu Xuejing, CEO of Huobi Asset Management, said: "Huobi Asset Management uses a convenient and compliant channel regulated by the Hong Kong Securities Regulatory Commission to solve customers' worries about custody, accounting, auditing and taxation in the process of virtual asset investment in the form of traditional financial products. Several fund products issued by the company can meet the needs of customers of different categories and risk preferences. We are very confident about future growth."

Ms. Wu also revealed that the funds launched by Huobi Asset Management this time are only for professional investors. Among them, mining-related private equity funds are aimed at investors who want to achieve relatively stable returns through primary market operations; active multi-strategy virtual funds are aimed at customers who hope to obtain better returns than passive allocations through active strategy funds issued by trusted platforms.

Ms. Zhang Li, Chief Financial Officer of Huobi Technology, said: "I am very pleased to see the rapid implementation of Huobi Asset Management's virtual fund product business. At the same time, Huobi Technology's virtual asset custody business is also being prepared in full swing. We hope to become a leader in providing a full range of virtual asset-related services in Asia, leading and continuously promoting the compliance process of virtual assets."

Huobi Technology Holdings Co., Ltd. (Huobi Technology, formerly Tongcheng Holdings, stock code: 1611.HK) was listed in November 2016. In addition to providing OEM production and electronic manufacturing services for power supplies and electronic components, Huobi Technology actively develops the blockchain ecosystem and virtual asset ecosystem, and is committed to becoming Asia's leading one-stop virtual asset service platform. Huobi Technology has applied for a number of virtual asset and financial-related licenses in major markets around the world. Currently, the company and its subsidiaries have successfully applied for Type 4 (providing advice on securities) and Type 9 (asset management) licenses issued by the Hong Kong Securities and Futures Commission ("SFC"), a Hong Kong trust or company service business license, and a trust company license in Nevada, USA.

In March 2021, Huobi Technology's wholly-owned subsidiary Huobi Asset Management received approval from the Hong Kong Securities and Futures Commission to issue and manage funds that are 100% virtual assets.