Asia might be joining other continents in embracing digital assets as more firms within the region are creating opportunities for investors to get crypto exposure through their platform. Institutional investors are the current targets of these firms, and they want to manage their digital asset portfolio within the continent.
Huobi similarly received a go-ahead from Hong Kong’s Securities and Futures Commission to help investors manage digital assets portfolios. The company would likely explore the massive interest in Hong Kong for digital assets to assure business expansion and growth. Unlike before, when most people are unfamiliar with cryptos, investors now understand and see the potentials of holding virtual assets, leading to the massive demand for popular cryptos like Bitcoin and Ethereum.
Huobi gets Hong Kong’s SFC’s approval
Experts predicted that the Asian space would open up to cryptocurrencies by creating opportunities and infrastructure to facilitate virtual assets management, especially for large-scale investors like Institutional buyers. For Huobi to comply with laid down rules, it must agree to be regulated by the city’s authorities. Since the derivatives firm got the state’s approval, it has been planning on creating a Bitcoin tracker fund, an Ethereum tracker fund, and a multi-strategy fund.
While this new approval is a big step for the company, this is not its first license as it had received a Type 4 and 9 license in 2020. The first license is to allow the company to give clients consultation on securities, while the second allows it to manage people’s assets.
Now, sources believe that Huobi’s new license reveals that it was going for institutional investors and would likely give advisory and management services to large-scale buyers. There is a sudden interest in the SFC license as Arrano Capital received the same recently.
The firm is one of the first crypto-related companies to get SFC’s approval, which allowed institutional buyers within the region to get some exposure to cryptocurrencies. The company also launched a Bitcoin Fund last year as it focused strictly on trading Bitcoin. The asset manager added that there is a likelihood that it would create more funds to accommodate other tokens in the space.
Institutional investors can benefit from Huobi’s management services
After Arrano capital received the license came Mai Capital, which is the region’s second firm with crypto-related services to receive the license. The company also focuses mainly on Bitcoin, primarily because institutional buyers prefer the king coin based on numerous reasons. Sources revealed that the two firms recorded impressive earnings due to the Bitcoin surge that took over December and early 2021.
An expert called Leslie Lamb spoke on the newly acquired license, which Huobi received. The head of sales at Amber Group explained that Huobi is not the first crypto-focused firm to receive the license but the first branded firm to diversify different funds, which would allow investors to get exposure to numerous assets.
The sales head also added that it would allow the Asian space to get exposure to a fully regulated and actively managed crypto fund. Huobi would likely change things in the crypto space as more money will flow into the digital asset industry.
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