CMCC Global, a well-known venture capital entity based in Hong Kong, has come up with Liberty Bitcoin Fund, as per the latest reports. The group has unveiled the Fund with the primary purpose of providing cryptocurrency access to all those accredited Asian investors who are slow in making direct purchases of the coins despite being interested.
The company’s Bitcoin Fund, a single-asset passive Bitcoin tracker, offers a number of services that include purchasing as well as safekeeping the coins. Providing more details about the company’s new offering, Martin Baumann, CMCC Global’s managing partner, said that their company has been receiving an increasing number of questions over time from its current investors on whether they could help them purchase Bitcoin. Therefore, these new funds are driven by demand, added Baumann.
Increase in Demand
With increasing interest and adoption of digital currencies across the globe, the demand for crypto as asset classes for conventional funds has also increased. However, the extreme volatility of cryptocurrencies, especially the number one crypto Bitcoin, is something that proves to be detrimental to investors’ portfolio returns. But with digital assets gaining recognition and becoming more mature like its inclusion in ETFs and mutual funds, the volatility should subside slowly, making it an appropriate investment option in portfolios with multiple assets, points out money management company CLS Investments’ portfolio manager, Kostya Etus.
As per industry experts, the mutual fund has become a great way to own cryptocurrency as digital assets are now growing to be considered a legal investment choice in portfolios. Explaining further, Etus also stated that investors who don’t prefer opening a specific account for digital assets would be capable of buying mutual funds through their standard brokerage account. It makes them manage all their assets from a single place.
The Asian market
On CMCC’s endeavor of launching Liberty Bitcoin Fund, Baumann said that the ambition is to offer services of digital asset management in Asia that’s on par with United States’ Grayscale Investments LLC.
The new fund utilizes ANXONE Custody which is a proprietary safekeeping system for digital assets that comes with insured wallets offered by BC Group. BC Group is a publicly-listed entity in Hong Kong’s Stock Exchange that works in the digital asset technology domain.
It is important to note that since 2016, CMCC Global has established three funds, all of which are concentrated on investments in the proprietary tech infrastructure like Ethereum network that lets developers build apps. These funds have successfully raised funding from family office assets, institutional investors, and HNIs. While the first such fund had acquired one million dollars, the second and third had obtained 3.5M dollars and 30M dollars.