Arrano Capital, the blockchain arm of Hong Kong-based asset manager Venture Smart Asia Limited, has launched the country’s first regulated Bitcoin fund. The venture capital firm is seeking a target of $100 million under management for its first year.
The first regulated Bitcoin fund in Hong Kong
Arrano Capital became the first asset manager to successfully clear licensing conditions with the Securities and Futures Commission (SFC) this month for the rollout of a Bitcoin fund.
As such, this will become the first SFC-approved Bitcoin fund, giving institutional investors a regulated path to enter the market.
It’s also worth noting that there have been previous asset managers who received licenses. Still, those failed to meet the full criteria to run pure cryptocurrency funds that could be marketed to professional investors. The venture capital firm is seeking a target of $100 million under management for its first year.
Arrano Capital targets $100 million in assets under management in 1 year
Arrano Chief Investment Officer (CIO) Avaneesh Acquilla said that their first attempt is only a tracker fund, buying and selling bitcoin. The firm’s goal is to pass $100 million in digital assets under management in its first year.
Avaneesh Acquilla further revealed that the firm hopes to launch a second actively managed fund later in 2020. The second one, however, will deal with a basket of tokens. The CIO also said that they decided to launch this fund to address market demand from professional investors who are increasingly focused on Bitcoin as an alternative store of value.
Ultimately for Bitcoin to be widely accepted and for people to trust it, there needs to be regulation, he added.
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