HashKey Capital is intensifying its investments in the digital asset space by launching a new fund that will focus on second-tier cryptocurrencies, commonly known as “altcoins.” The company aims to raise $100 million over a year for this fund, scheduled to launch on September 1, 2023.
The new fund will specifically target altcoins that show potential to outperform Bitcoin, HashKey Capital‘s portfolio manager, Jupiter Zheng said, adding that the fund has already secured potential clients, primarily high-net-worth individuals and investment firms catering to affluent Asian families.
According to Zheng, less than half of the fund’s assets will be allocated to Bitcoin and Ethereum. The firm intends to leverage its experience in crypto venture investment to diversify its investments across various altcoins. A portion of the fund’s assets will also be held in cash.
Zheng also revealed that the company is actively onboarding offshore Chinese financial institutions to facilitate the distribution of their offerings. The move comes against the backdrop of the Hong Kong stock market’s lackluster performance, which has prompted investors to explore more diversified investment strategies.
HashKey Capital has remained steadfast in its support for Web3 projects despite market fluctuations. The firm previously raised $500 million for its HashKey FinTech Fund III and has invested in initiatives like Dispersion Capital’s decentralized infrastructure projects and Tabi’s gaming ecosystem on the BNB Chain.
Earlier this month, HashKey Capital received approval from the Securities and Futures Commission of Hong Kong to operate a virtual asset trading platform, enabling it to provide crypto trading services to both institutional and retail investors.
Apart from being one of the first licensed exchanges to offer retail crypto trading in Hong Kong, HashKey has also introduced its crypto over-the-counter (OTC) trading service, known as HashKey Brokerage. The OTC platform has been developed in accordance with local securities regulations, aligning with the newly implemented cryptocurrency regulatory framework set forth by the Securities and Futures Commission (SFC).
HashKey PRO also offers fiat on- and off- ramp support to users in order to allow users to directly transfer USD from their bank account to the HashKey PRO fiat wallet via SWIFT. The platform accepts bank transfers from 16 countries globally and has plans to expand in the future. Settlement banks ZA Bank and Bank of Communications (Hong Kong) facilitate the depositing and withdrawal of fiat currencies. The platform will continue to expand its options and partnerships with other local and international financial institutions.
