A Hong Kong-based multi-family office that manages money for some of the city’s wealthiest families is reportedly venturing into the crypto industry for the first time.
The firm, which has $4 billion in assets under management, is looking to invest up to $10 million in Re7 Capital strategies, Bloomberg reported on Monday. However, the size of the allocation has not been finalized yet.
“The decision is part of recent moves by VMS to diversify into more liquid investments,” VMS Group managing partner Elton Cheung told Bloomberg.
Cheung went on to state that while the firm has made substantial gains in private equity and other long-term investments, it is harder for the firm to exit from such investments, as more and more companies are opting to stay private for longer periods of time.
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VMS Group cited increasing demand and the regulatory environment turning favorable as the reasons behind the move.
“We thought this was the right time because of growing demand and because we see clearer legislative and government support from various jurisdictions, as well as large institutional support and endorsement,” Cheung said.
Notably, VMS Group is choosing to invest indirectly via Re7 Capital instead of directly investing in digital assets themselves. Re7 Capital is a digital assets investment firm that focuses on generating yield via DeFi and other crypto strategies.
Cointelegraph reached out to VMS Group but did not receive a response by the time of publication.
Easing regulation
Hong Kong has recently taken regulatory steps to foster crypto innovation in the region.
Earlier this month, the Hong Kong government was reportedly using Chainlink’s Cross-Chain Interoperability Protocol to explore opportunities for its central bank digital currency initiative.
On June 4, Hong Kong regulators allowed professional investors to trade crypto derivatives as part of their plan to expand product offerings to such investors.
In May, Hong Kong’s Legislative Council passed a bill that will allow companies to issue stablecoins backed by fiat currencies by the end of the year.
Hong Kong firms accumulate crypto
Hong Kong-based firms have already started adding crypto to their treasuries.
Last week, MemeStrategy, an investment firm managed by 9GAG, became the first publicly traded company in the region to invest in Solana. The firm bought more than 2,400 SOL tokens for $368,000.
Meanwhile, in May, heat-and-eat meal seller DDC Enterprise bought 21 BTC as part of its broader strategy to accumulate 5,000 Bitcoin over the next three years.
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