Arrano Capital, Venture Smart Asia’s blockchain arm, reported it had met the Hong Kong regulatory requirements to launch a crypto fund.
In its first year, Venture Smart Asia has launched Hong Kong’s first funded crypto-currency fund. They have a $100 million aim under management.
Arrano Capital has announced the launch of a new Bitcoin fund in Hong Kong, according to Bloomberg’s article on April 20th. The venture capital firm announced that it had met local Securities and Futures Commission (SFC) requirements for a registered crypto fund.
Arrano Chief Investment Officer (CIO) Avaneesh Acquilla stated that the first try is to buy and sell BTC as a tracker fund. Nonetheless, its first year’s target is to cross $100 million in digital assets under control. The CIO aims to open a second actively controlled fund later in 2020 dealing with a tokens basket.
They have decided to launch the fund to tackle market demand from pro investors focused on Bitcoin as an alternative value store. There needs to be regulation for Bitcoin to be widely accepted and people to trust it.
Crypto funds rarely approved in Hong Kong
After the SFC announced that it would start formally regulating crypto exchanges in October 2018, there were few commission approvals. Blockchain financial services company Diginex in June 2019, became one of the first to get permission to control digital assets.
However, the implementation of Venture Smart Asia makes it the first official crypto fund in the special economic zone. This allows for a window into BTC for pro investors.