- A Hong Kong fund will raise $100M this year for startup investments.
- A fund focused on Web3 ventures has already raised $30 million.
- Hong Kong`s support for crypto contrasts with the intense regulatory scrutiny in the sector.
According to a recent Bloomberg report, Hong Kong continues to solidify its position as a leading fintech hub, with a new digital asset fund set to raise $100 million worth RM442.4 million this year for startup investments. The Hong Kong-based fund aims to support the growth of creative digital assets, in line with the city’s push for more significant financial innovation and technology.
Notably, a fund focused on Web3 ventures has raised $30 million, with plans to invest in promising startups that leverage blockchain, cryptocurrency, and other digital assets. The fund’s focus on Web3 technologies aligns with Hong Kong’s ambition to establish itself as a fintech leader, as the city sees digital assets as a critical driver for economic revival.
People familiar with the matter state that with this new fund, Hong Kong is well positioned to attract top-tier talent and capital to accelerate the growth of its vibrant fintech ecosystem.
According to experts, the city’s support for cryptocurrency exchanges starkly contrasts the intense regulatory scrutiny that has been applied in the cryptocurrency sector. This scrutiny allegedly happened in the aftermath of the shocking collapse of FTX last year. It additionally happens at a time when regulatory uncertainty is still ignited in the XRP vs. SEC lawsuit.
A long-time tech investor Curt Shi told Bloomberg News:
I understand the concerns, but nothing is perfect given the complexity of the crypto economy. Our plan is to keep doing what we’re doing and see where it takes us.
The fund has reportedly made investments in a total of six different digital asset initiatives at present, including the metaverse firm GigaSpace, which is headquartered in Hong Kong, and One Future Football, which is based in Australia.
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