The first approved crypto asset fund has been launched in Hong Kong with a target of US$100 million [AU$157 million]. It aims to increase exposure and open the door to digital assets for institutional investors.

As reported by Bloomberg, Venture Smart Asia Ltd. has launched the first officially sanctioned crypto asset fund after clearing licensing conditions with the Securities and Futures Commission (SFC).

It is the first time the Hong Kong SFC has approved a pure crypto fund that can be marketed only to professional investors.

Investors can already access digital assets such as Bitcoin and Ethereum, but a fully approved fund is likely to gain traction due to its regulatory backing.

A second actively managed fund dealing with a basket of digital tokens will be launched later this year according to Arrano Capital, the asset manager’s blockchain division.

Arrano Chief Investment Officer Avaneesh Acquilla said:

“We 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.”

Unlike on the neighboring mainland, Hong Kong remains open to the crypto industry, which has attracted a lot of Chinese investment and venture capital in recent years.

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