HashKey, the Hong Kong-based financial service firm, is poised to make substantial investments in altcoins through its impressive $100 million digital asset fund. In a bold departure from convention, less than half of the fund’s assets will be allocated to Bitcoin and Ethereum. Jupiter Zheng, the company’s Portfolio Manager, has elucidated the rationale behind this strategic shift. HashKey’s primary objective is to surpass the market leader, Bitcoin, and it intends to leverage its extensive experience in crypto venture investments to diversify its altcoin portfolio. Zheng has further disclosed that a portion of the fund’s holdings will also be in cash.
Investors Wish to Chase ‘Alpha’ Returns in Crypto: HashKey Portfolio Manager
The fund, initiated by asset manager HashKey on Friday, September 1st, is off to a promising start. Zheng confidently states that they have already attracted potential clients, notably high-net-worth individuals and investment firms that serve affluent Asian families.
HashKey, with over $1 billion in assets under management, boldly set forth a month ago with the goal of raising $100 million within a year, exclusively for investment in cryptocurrencies and other digital assets.
Furthermore, HashKey’s Portfolio Manager revealed that the company is actively forging distribution channels with offshore Chinese financial institutions. According to him, investors are seeking avenues to diversify their portfolios due to the underperformance of the Hong Kong stock market, with the Hang Seng Index having declined by more than 10.02% over the past six months as of our press time.
Zheng is confident that the crypto asset market is reaching a bottom and anticipates a forthcoming surge in liquidity. Regarding investor sentiment, he remarks, “We see untapped demand among professional investors who aspire to achieve above-market alpha returns in the crypto space.”
Typically, institutional funds allocate a significant portion of their assets to Bitcoin and Ethereum. HashKey, however, has made a bold decision to prioritize non-Bitcoin and Ethereum assets in pursuit of enhanced returns. Only time will reveal the wisdom of this choice.