By Ifaenyi Egede (Nigeria)
Hong Kong Cryptocurrency Fund
With cryptocurrencies taking the world by storm since its inception, leading digital asset, Bitcoin has amassed a massive market capitalization of $117.8 billion during the first quarter of 2020. However how great this news is, the digital asset has obviously met with obstacles and regulations in different aspects across the globe owing to the regulations of the crypto assets. With the selection of regions historically including Hong Kong, the Security and Futures Commission of the region has approved few crypto outfits since it started to regulated crypto businesses in the region.
Despite the scarcity of approval of crypto investments in the region, Venture Smart Asia has seen its recent application granted and would go down in history as the first official crypto fund in the Hong Kong region. What this new approval has in store for Hong Kong is yet to be known especially in the face of the novel coronavirus. With most analysts across the country saying this new investment could help the economy, others are arguing that it would further dampen the economy.
Venture Smart Asia receives approval in Hong Kong
With this new approval of the fund, the majority of the crypto population and individuals who are just entering the crypto space in Hong Kong would be allowed to openly invest in the crypto fund. This would bring the much-needed adoption of crypto in the region to a massive surge not seen in years. With Venture Smart known for their versatility in operating funds, they have set a $100 million target under management in the first trade year. This might be easily achievable because demands are high for crypto tokens around the region through brokerage platforms.
Also read:The firm has said that they would focus largely on Bitcoin because the digital asset is in high demand by the majority of the population around the region. Furthermore, the fund would enable participants to buy and sell in huge sums hence serving as a tracker fund and the $100 million target. However, Venture Smart has said that if this is a success, they would open another fund in the latter parts of 2020.
Good news for the Hong Kong economy
This new development might be good news for the region that is battling to contain the recent outbreak of the novel coronavirus pandemic while observing lockdown guidelines. With the country gradually opening up, they will look to take advantage of the fund to find their feet economy wise. With the fall of the Hong Kong dollar, the fund is set to have a good impact on the Hong Kong economy in the short term. However, if a new fund that is not related to crypto is created, it might bring in streams of other investment opportunities to the region.
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