Metalpha to raise $100 million to offer Grayscale Bitcoin products in Hong Kong
Hong Kong-based cryptocurrency asset manager Metalpha Technology is working to offer new entry points to Bitcoin (BTC) and Web3 to investors in Asia.
Metalpha is raising a $100 million fund to invest in Bitcoin and other crypto products by major US crypto asset manager, Grayscale Investments. The new fund aims to help Chinese investors get a regulated channel to invest in cryptocurrencies and Web3, Bloomberg reported on April 12.
Metalpha’s upcoming investment project, known as Next Generation Fund I, is being launched in partnership with NextGen Digital Venture Limited. The fund will invest directly in Grayscale’s crypto investment products and indirectly through structured derivatives related to Grayscale’s products, allowing institutions and high net worth individuals to gain indirect exposure to crypto.
According to Metalpha founder and CEO Adrian Wang, the company has already secured $20 million for its new fund since March. He said the fund has so far attracted many Chinese investors, saying:
“Many of our clients are family offices with a traditional background, rather than pure crypto or pure Web3 native investors […] There are overseas Chinese institutions – some of them are family offices, some of them are public companies.”
Wang also noted that Metalpha had seen increased demand for its products recently, which followed a series of difficulties related to the 2022 bear market, as well as the collapse of the FTX crypto exchange. “Many customers were hesitant to place new orders, but now things are getting much better,” Wang said, adding that a lot of new traffic is coming in and people are gaining more confidence now.
Related: Chinese state-owned insurer launches two crypto funds in Hong Kong: Report
Founded in 2015 and originally known as Dragon Victory International, Metalpha provides supply chain management platform services and cryptocurrency derivatives product services in Hong Kong. The firm changed to Metalpha in late 2022, shortly after receiving a Nasdaq notification regarding a lack of minimum bid price. Metalpha regained compliance with Nasdaq’s listing rules from April 2023.
Metalpha is backed by Singapore-based venture capital firm Analpha, which has reportedly worked with Chinese crypto mining company Bitmain to offer low-interest loans to crypto miners.
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