HashKey Capital forms liquid fund with heavy altcoin focus: Reuters

Quick Take

  • The Hong Kong crypto investment firm’s portfolio manager said less than half of the fund’s holdings will be in bitcoin and ether, adding that it will instead diversify allocations to altcoins.

HashKey Capital, the investment arm of Hong Kong crypto financial services firm HashKey Group, on Friday launched a secondary market crypto fund that’s set to invest heavily in altcoins, according to a Reuters report.

Reuters reported Thursday that the fund has secured potential clients, including high-net-worth investors and Asian family offices, citing the firm’s portfolio manager, Jupiter Zheng Jialiang. The firm ultimately aims to raise $100 million for the new fund over 12 months, according to Reuters. HashKey Capital, which has over $1 billion in assets under management, closed its third venture fund at $500 million in January

Zheng Jialiang said that investments in bitcoin and ether would account for less than half of the fund's holdings, adding that it will diversify into altcoins and cash. 

HashKey's venture portfolio includes Aztec, Blockdaemon, dYdX, Animoca Brands and Polkadot, according to its website.

The firm did not immediately respond to The Block’s request for comment.

Expansion in Hong Kong

Earlier this month, HashKey Exchange became the first crypto outfit in Hong Kong to obtain a license under the city’s new licensing regime, which permits crypto trading platforms to offer retail services. On Monday, HashKey started offering crypto trading services to retail clients.

In an interview with The Block last week, Livio Weng, HashKey’s chief operating officer, said the exchange has high hopes for its retail services.

"We hope to grow our registered user base to between 500,000 to 1 million by the end of this year," Weng said. "We’re also anticipating a more bullish market next year. If that’s the case, we would target to serve 10 million users by 2025."

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