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Cryptocurrency trade has become more popular over the course of this year as Bitcoin’s performance on crypto markets makes the asset class more attractive to investors.
For many investors, access to cryptocurrency is limited because most of the tokens have already been purchased. Investors who have been slow out of the blocks but are interested in the asset class find it difficult to buy the crypto assets they desire.
Enabling access for prospective investors
CMCC Global, a venture capital group, based in Hong Kong, has launched its Liberty Bitcoin Fund to give investors in Asia access to crypto coins.
Accredited investors will be able to register with the fund and gain access to digital assets. Liberty Bitcoin Fund is a passive tracker of Bitcoin, and it offers its clients buying and safekeeping services for Bitcoin.
According to Martin Baumann, managing partner of CMCC Global, they have received more inquiries over the years from investors currently registered with the firm about whether they could help these investors purchase Bitcoin.
The fund the firm has created is driven by demand for such a service.
CMCC expansion of services
CMCC Global has created three funds since 2016. The funds are all geared towards providing clients with investment options. One area covered by the investment funds is proprietary technical infrastructure for the ethereum network, allowing developers to build applications.
Each of the funds created by CMCC Global has generated profits for the group. High net worth individuals, institutional investors, and family trusts are the target market of these funds.
The three funds have made $1 million, $3.5 million, and $30 million each. Baumann said that the highest investor in the third fund is one of the wealthiest families in Asia, but he declined to reveal the identity of the investor because of privacy regulations.
Japanese messaging giant, Line, is also an investor in the third fund.
Demand for crypto rising but access in Asia is limited
The maturity of cryptocurrencies has made them a viable investment option in multi-asset portfolios. As the perception that these assets are a legitimate investment continues to grow, mutual funds increase the accessibility that investors have to these assets.
Kostya Etus, portfolio manager at CLS Investment, said that cryptocurrencies might not be as stable as traditional asset classes, but their price movements do not usually rely on how other assets perform.
Bitcoin is associated with high volatility, and this could affect the performance of one’s investment portfolio as a whole.
Despite the risks that come with this asset class, there is a high demand for Bitcoin in Asia. Faltering money markets have pushed more investors towards Bitcoin trade.
Baumann said that the Liberty Bitcoin Fund has been launched to provide digital asset management services in Asia, much like Grayscale in the US.
Essential services such as fund administration and auditing are challenging to find where crypto assets are concerned, and the fund will provide these services. The professional custodian will bring Bitcoin to accredited investors in Asia and boost the trade of the coin.