By George Ward
The Hong Kong-based crypto asset manager Metalpha Technology recently announced that it is working on introducing new Bitcoin investments into the Asian market. Hence, Metalpha plans to raise $100 million to fund this offering and will focus on Grayscale Investments products at this initial stage.
A Grayscale Bitcoin Products For Asia
According to reports, the Hong Kong wealth management firm believes the new funds it seeks will help Chinese and other Asian investors get on a regulated platform to invest in digital assets and the Web3. Dubbed the “Next Generation Fund 1”, the upcoming investment initiative is launched in collaboration with NextGen Digital Ventures.
Moreover, the fund will be directly invested in Grayscale crypto investment tools and indirectly via structural derivatives tied to the American asset manager’s products. This will allow large institutions and other high-net-worth investors to get crypto exposure.
Metalpha founder and CEO Andrian Wang revealed that the company had secured $20 million for its new funding round since last month. According to him, the fund has attracted many investors from China, with some Asian market players also expressing their interests.
Wang noted that most Metalpha clients are family-oriented businesses with traditional structures rather than only crypto and Web3 investors. He added that some clients are also overseas Chinese enterprises with some publicly listed ones.
Increased Demands
Furthermore, Wang explained that Metalpha has continued to see rising demands for its crypto investment products amid market uncertainties. The broader crypto market correction of 2022 and the various bankruptcies and FTX collapse in November last year were huge shocks to the digital assets industry.
According to Wang, many clients hesitated to inject their funds at the peak of the crypto market turmoil, but their perspective on the industry has changed. The CEO noted that the firm sees many demands as more people regain their confidence in the market.
Metalpha was established in 2015 and was previously known as Dragon Victory International. At its inception, the firm offered supply chain management services before venturing into crypto derivatives products.
The Hong Kong-based company rebranded to Metalpha late last year after receiving a Nasdaq review about its low minimum bid price requirements. However, the company met the Nasdaq’s listing compliance requirement earlier this month.
The firm is backed by the Singapore-based venture capitalist, Antalpha, which reportedly has a close working relationship with the Chinese crypto mining platform Bitmaim by providing miners with low-interest loans. Experts regard Asia as the next crypto and Web3 hub, considering the region’s numerous projects and investments in the digital asset ecosystem.
Singapore has been the model for other jurisdictions in Asia, going by the number of crypto and blockchain firms setting up shops in the country. Most top crypto exchanges that have had difficulty dealing with regulators see Singapore as a haven because of its robust and crypto-friendly regulations.