Hong Kong’s Metalpha Launches Fund with Grayscale to Offer Bitcoin Products in Asia

In the Brief:

  • Metalpha is raising $100M to invest in Grayscale Investment's crypto products for Chinese investors
  • The fund aims to provide regulated access to crypto and Web3
  • $20M has already been secured
  • Demand has increased following the 2022 bear market and FTX collapse
  • The fund provides Chinese investors with a regulated channel to enter the crypto market.

3 - 4 minute read

Hong Kong-based cryptocurrency wealth management firm, Metalpha, is raising a $100 million fund to invest in Grayscale Investment’s Bitcoin and other crypto products in order to provide regulated channels for Chinese investors to gain exposure to cryptocurrencies and Web3. The fund, called the Next Generation Fund I, will invest directly in Grayscale’s crypto investment products and indirectly through structured derivatives related to Grayscale’s products.

Metalpha Technology is a cryptocurrency wealth manager based in Hong Kong.
The firm is raising a $100 million fund with NextGen Digital Venture Limited to invest in Grayscale Investment’s cryptocurrency products. The Next Generation Fund I aims to provide Chinese investors with regulated channels to access cryptocurrencies and Web3. The fund will invest directly in Grayscale’s products and indirectly through structured derivatives.

Metalpha has already secured $20 million for the fund since March and has seen increased demand for its products following the bear market of 2022 and FTX crypto exchange collapse. Metalpha is backed by Antalpha, a Singaporean venture capital firm working with Chinese mining firm Bitmain to offer low-interest loans to miners. Metalpha was previously known as Dragon Victory International, offering supply chain management platform services and cryptocurrency derivative product services in Hong Kong before rebranding to Metalpha in late 2022.

According to Adrian Wang, Metalpha’s founder and CEO, the Next Generation Fund I has so far attracted many Chinese investors, particularly those with traditional backgrounds such as family offices and public companies. He noted that the demand for Metalpha’s products has increased recently after the bear market of 2022 and the collapse of the FTX crypto exchange. Wang stated that clients were previously hesitant to place new orders but that confidence is now returning, and new traffic is coming in.

The entrance of a regulated fund like Metalpha’s Next Generation Fund I could provide an opportunity for Chinese investors to access the cryptocurrency market. It is essential to note that cryptocurrency investments are often speculative and are associated with high risks. Investors should conduct their own research before investing any funds. Moreover, traders should monitor the performance of the fund and other regulatory changes in Asia that could impact the market.

The Bottom Line

The creation of the Next Generation Fund I by Metalpha presents a promising prospect for Chinese investors to get regulated exposure to cryptocurrency and Web3 products. Nonetheless, cryptocurrency investments are speculative, and while Metalpha’s fund may provide a channel for institutional and high-net-worth individuals to get indirect exposure to crypto, it is essential to remember that there are risks involved. Traders should pay close attention to the ongoing regulatory changes in Asia and monitor how the market will be impacted by Metalpha’s fund.

Disclaimer: The content in this article is provided for informational purposes only and should not be considered as financial or trading advice. We are not financial advisors, and trading carries high risk. Always consult a professional financial advisor before making any investment decisions.

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